An appreciation of the US dollar relative to foreign currencies is expected to cause what effect on exports?

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Multiple Choice

An appreciation of the US dollar relative to foreign currencies is expected to cause what effect on exports?

Explanation:
When the US dollar appreciates, US goods and services become more expensive for buyers using other currencies. That higher price tends to reduce foreign demand for US exports, so exports fall. The opposite would happen if the dollar depreciated—US goods would be cheaper abroad and exports would rise. So, an appreciating dollar leads to decreased exports, not increased or unchanged exports, and not exports becoming cheaper in foreign markets.

When the US dollar appreciates, US goods and services become more expensive for buyers using other currencies. That higher price tends to reduce foreign demand for US exports, so exports fall. The opposite would happen if the dollar depreciated—US goods would be cheaper abroad and exports would rise. So, an appreciating dollar leads to decreased exports, not increased or unchanged exports, and not exports becoming cheaper in foreign markets.

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