When the Dollar Appreciates, Which of the Following Generally Occurs

question 63

Multiple Choice

When the dollar appreciates, which of the following generally occurs?

• A)exports increase.
• B)imports decrease.
• C)imports increase.
• D)exports remain the same.

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Definitions:

Consumer Spending

The total amount of money spent by individuals and households on goods and services for personal use, a key driver of economic activity.

Disposable Income

Monetary assets available for households to invest in spending and saving after tax obligations.

Saving

The process of setting aside a portion of current income for future use, or the funds that have been set aside for such purposes.

Disposable Income

Financial holdings households can direct towards spending and saving activities after tax deductions.