If the U.S.dollar appreciates in the foreign exchange market,then:

A) American goods will become more expensive for foreign buyers and foreign goods will be cheaper for Americans.
B) American goods will become less expensive for foreign buyers and foreign goods will be more expensive for Americans.
C) more U.S.dollars will be required to buy a foreign currency.
D) U.S.exports will increase.
E) neither the price of U.S.exports nor the price of U.S.imports will change.

Question

Sumit Dhillon · Accepted Answer

Final Answer : A, Explanation :  If the U.S. dollar appreciates, then it means that it has increased in value in relation to other currencies. This makes American goods more expensive for foreign buyers because they will need to pay more of their currency to buy the same amount of U.S. dollars needed for the purchase. On the other hand, foreign goods will be cheaper for Americans because they will need to spend fewer U.S. dollars to buy the same amount of goods in foreign currency.

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