Hoding all other factors constant, an appreciation of the US $ versus all other
ID: 1210907 • Letter: H
Question
Hoding all other factors constant, an appreciation of the US $ versus all other countries' currencies will
A. decrease the price of imports into the US thereby lowering inflation in the US
B. increase the price of exports into the US causing exports to decrease and thereby weakening the US economy
increase the amount of the trade deficit
All of the above
A. decrease the price of imports into the US thereby lowering inflation in the US
B. increase the price of exports into the US causing exports to decrease and thereby weakening the US economy
C.increase the amount of the trade deficit
D.All of the above
Explanation / Answer
The correct answer is option (A).