The Appreciation of the Dollar Would Tend to Affect the Foreign

question 78

Multiple Choice

The appreciation of the dollar would tend to affect the foreign price of U.S.-made goods by causing the foreign prices of U.S. goods to

• A)decrease.
• B)increase.
• C)remain unchanged.
• D)None of the above

---

Definitions:

Current Account

A component of a country's balance of payments that measures the trade of goods and services, net earnings on investments, and transfer payments.

Tangible Products

Physical items that can be seen, touched, and used, as opposed to services or digital goods.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body or corporation, or rights to ownership as represented by an option.

Trade Balance

The difference in value between a country's imports and exports over a given period, a component of a country's balance of payments.