An appreciation of the US dollar would make US exports more expensive overseas and foreign goods...
An appreciation of the US dollar would make US exports more expensive overseas and foreign goods cheaper in the US, resulting in a decline in the US aggregate demand.
options:
| True | |
| False |
Homework Answers
The statement is true
- Appreciation of US dollar means that the US dollar is worth more in volume than any foreign currency.
- When the US dollar appreciates, the Export prices Increases which would lead to a fall in the quantity of US Exports.
- The domestic consumers in US will find foreign goods or imports to be cheaper than the domestic goods, which would lead to an increase in the foreign imports.
- The increase in imports and a fall in Exports will lead to a lower Economic growth and decreases the aggregate demand in US.
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