As the real value of the dollar rises,the balance on the current account is likely to ________.

Question

Quizplus · Accepted Answer

An increase in the real value of a country's currency makes its exports more expensive in foreign markets, while imports become relatively cheaper for domestic consumers. This leads to a decrease in exports and an increase in imports, resulting in a trade deficit and a decrease in the balance on the current account.

As the Real Value of the Dollar Rises,the Balance on the Current