Question

When the dollar appreciates, u.s.

a. exports and imports increase.
b. exports and imports decrease.
c. exports decrease, while imports increase.
d. exports increase, while imports decrease?

Answer 1

I believe the answer is: C. exports decrease, while imports increase.

When a dollar apprecaites, it means that our dollar become higher in value.

This would make foreign nations will obtain smaller number of goods with the same amount of currency, which would cause the decrease in our exports.
Since we could obtain larger number of goods with our currency, we would import more goods from other country.