When the dollar appreciates against other world currencies, nations whose currencies are pegged to the dollar:
A) Generally find it easier to export their products to non-dollar countries
B) Generally find it more difficult to export their products to non-dollar countries
C) Do not notice any change in their trading competitiveness

Question

Quizplus · Accepted Answer

When the dollar appreciates, it means the value of the dollar has increased relative to other currencies. For nations whose currencies are pegged to the dollar, their currencies also effectively appreciate. This makes their goods more expensive and less competitive in non-dollar countries, hence making it more difficult to export their products.

When the Dollar Appreciates Against Other World Currencies, Nations Whose