If the Dollar Appreciates

question 14

Multiple Choice

If the dollar appreciates,

• A) imports to the United States become more expensive for foreigners.
• B) exports from the United States become more expensive for foreigners.
• C) imports become more expensive for U.S. citizens.
• D) exports from the United States become cheaper.
• E) the dollar will exchange for fewer units of a foreign currency.

---

Definitions:

Division of Labor

The breakdown of production processes into distinct tasks, with different workers specializing in each task to increase efficiency and productivity.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business.

Barter

The direct exchange of goods and services without the use of money as an intermediary.

Money-Based Trade

Transactions involving the exchange of goods or services for money, as opposed to barter trade, where goods are exchanged directly for other goods.