An appreciation of the dollar A.makes our exports more expensive in terms of for

Q: An appreciation of the dollar A.makes our exports more expensive in terms of for

The correct choice is A Explanation : - The appreciation and depreciation of US dollar affects net exports. As the dollar appreciates, foreign goods becomes cheaper , Americans increase their purchase of foreign goods , and foreigners whose currency has depreciated cut back on their purchases of US exported goods and therefore net exports decreases.

ID: 1129424 • Letter: A

Question

An appreciation of the dollar

A.makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.

B.makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.

C.makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports.

D.makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports.

Explanation / Answer

The correct choice is A

Explanation : - The appreciation and depreciation of US dollar affects net exports. As the dollar appreciates, foreign goods becomes cheaper , Americans increase their purchase of foreign goods , and foreigners whose currency has depreciated cut back on their purchases of US exported goods and therefore net exports decreases.

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An appreciation of the dollar A.makes our exports more expensive in terms of for

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