When the Real Exchange Rate for the Dollar Appreciates,U

question 40

Multiple Choice

When the real exchange rate for the dollar appreciates,U.S.goods become

• A)less expensive relative to foreign goods,which makes exports rise and imports fall.
• B)less expensive relative to foreign goods,which makes exports fall and imports rise.
• C)more expensive relative to foreign goods,which makes exports rise and imports fall.
• D)more expensive relative to foreign goods,which makes exports fall and imports rise.

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Definitions:

Human Capital

The collective skills, knowledge, and other intangible assets of individuals that can be used to create economic value.

Productivity

A measure of the efficiency of production, often calculated as the ratio of output to inputs in the production process.

Standard of Living

The amount of riches, ease, physical items, and basic requirements possessed by a distinct class or region.

Productivity

The measurement of the efficiency of production, often evaluated as the ratio of output to inputs in the production process.