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

Question

Quizplus · Accepted Answer

When the real exchange rate for the dollar appreciates, U.S. goods become more expensive relative to foreign goods, leading to a decrease in exports and an increase in imports.

When the Real Exchange Rate for the Dollar Appreciates,U