Question

True or False: The appreciation in the dollar’s exchange value from 1980 to 1985 made U.S. products less expensive and foreign products more expensive, decreased U.S. imports, and increased U.S. exports. True False

Answer 1

Answer:

False

Explanation:

Exchange rate is defined as the amount of a currency that is exchanged for another countrie's currency at a given time.

When the dollar appreciates it is stronger than other currencies. It takes fewer dollars to purchase US goods than foreign currencies.

So more of foreign currencies will be used to buy the US product (expensive). This will discourage exports.

This will also make foreign goods cheaper.

As foreign goods are cheaper the US will have more imports.