When the real exchange rate for the dollar appreciates, U.S. goods become A. mor

Question

When the real exchange rate for the dollar appreciates, U.S. goods become A.  more expensive relative to foreign goods, which makes exports fall and imports rise. B.  less expensive relative to foreign goods, which makes exports rise and imports fall. C.  more expensive relative to foreign goods, which makes exports rise and imports fall. D.  less expensive relative to foreign goods, which makes exports fall and imports rise. When the real exchange rate for the dollar appreciates, U.S. goods become A.  more expensive relative to foreign goods, which makes exports fall and imports rise. B.  less expensive relative to foreign goods, which makes exports rise and imports fall. C.  more expensive relative to foreign goods, which makes exports rise and imports fall. D.  less expensive relative to foreign goods, which makes exports fall and imports rise.

Explanation / Answer

C.  more expensive relative to foreign goods, which makes exports rise and imports fall.

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