An appreciation of the U.S. dollar ________ the price of U.S. imports, and ________ the price of U.S. exports.
A)lowers, lowers
B)increases, increases
C)increases, lowers
D)lowers, increases

Question

Quizplus · Accepted Answer

When the U.S. dollar appreciates, it becomes stronger relative to other currencies, making imports cheaper and exports more expensive. Therefore, the price of U.S. imports decreases and the price of U.S. exports increases.

An Appreciation of the U