What is the effect of a dollar appreciation against all foreign currencies? The current account balance...
What is the effect of a dollar appreciation against all foreign currencies?
The current account balance decreases, and the trade balance increases.
The current account balance and the trade balance are both unaffected.
The current account balance and the trade balance both decrease.
The current account balance and the trade balance both increase.
The current account balance increases, and the trade balance decreases.
Homework Answers
Trade Balance the net sum of a country's exports and imports of goods, and when the dollar appreciates the import becomes costlier and exports cheaper leads to increase in trade balance
Since there will be more export and less import , which tends to change current account balance and which will increase.
answer is d
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