Q.20; With constant price levels in the U.S. and other countries, a stronger (appreciating) dollar compared...
Q.20; With constant price levels in the U.S. and other countries, a stronger (appreciating) dollar compared to other currencies will tend to cause _____to rise, _____to fall, and _____to fall.
Group of answer choices
a. net exports; exports; imports
b. imports; exports; net exports
c. exports; imports; net exports
d. net exports; imports; exports
Homework Answers
When there is appreciation of currency it means the currency become stronger as compared to other currencies across the world
it causes imports cheaper but export becomes more expensive and as we know that net export is the difference of export and import
so when export is less than import then net export will be negative
Hence the next export will fall, export will fall but import will rise.
Hence the correct answer here is option B
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