When the dollar appreciates,U.S.
A)exports decrease,while imports increase.
B)exports and imports decrease.
C)exports and imports increase.
D)exports increase,while imports decrease.

Question

Quizplus · Accepted Answer

When the dollar appreciates (i.e. increases in value against other currencies), U.S. exports become more expensive for foreign buyers, leading to a decrease in exports. At the same time, imports become cheaper for U.S. buyers, leading to an increase in imports. Therefore, choice A is the correct answer.

When the Dollar Appreciates,U.S