Final answer:
When the dollar appreciates relative to foreign currencies, it signifies that foreigners need less of their own currency to buy a dollar,(option b) the purchasing power of the dollar increases, and it ultimately leads to the downtrend in the value of foreign currencies compared to the dollar. (option d)
Step-by-step explanation:
When the dollar appreciates relative to foreign currencies, it means that a series of economic shifts are occurring. For instance, foreigners need less of their currency to buy one dollar, and the value of foreign currencies decreased relative to our dollar. This implies that when the U.S. dollar strengthens or appreciates, one can purchase more foreign currency with the same amount of dollars, which typically benefits U.S. tourists and firms engaging in international trade. Frequent results of a strong dollar include a decrease in U.S. exports, as foreign buyers find U.S. goods more expensive, and an increase in imports as U.S. consumers find foreign goods cheaper. Additionally, for foreign firms, a strengthened dollar means that their earnings in dollars can buy more of their home currency, potentially leading to expanded sales in the U.S. economy.