Which of the following is NOT an advantage of a strong US dollar?
A) US consumers benefit from low prices on imports.
B) US tourists benefit from lower prices when traveling abroad.
C) Lower prices on foreign goods help keep US prices level and inflation low.
D) US firms in import-competing industries face more low-cost imports.

Question

Quizplus · Accepted Answer

A strong US dollar makes imports cheaper, but it also makes exports more expensive, which can hurt US firms that rely on exports or compete with imports. Therefore, US firms in import-competing industries may face more low-cost imports with a strong dollar, which is not an advantage. A strong US dollar can make imports cheaper, which is an advantage for US consumers and tourists. It can also help keep US prices level and inflation low by making foreign goods less expensive. However, for US firms in import-competing industries, a strong dollar can mean more low-cost imports, which can be disadvantageous.

Which of the Following Is NOT an Advantage of a Strong