If the dollar appreciates relative to foreign currencies, then
A) U.S. goods will look cheaper to foreign buyers.
B) foreign goods will look more expensive to U.S. buyers.
C) net exports of the U.S. will increase.
D) foreign buyers will ﬁnd U.S. goods have become more expensive.

Question

Quizplus · Accepted Answer

When the dollar appreciates, U.S. goods become more expensive for foreign buyers, as they need more of their currency to buy the same amount of U.S. goods.

If the Dollar Appreciates Relative to Foreign Currencies, Then