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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