Final answer:
A stronger dollar benefits American consumers by making imports cheaper and hurts American businesses by making exports more expensive, thus giving foreign businesses an advantage in the U.S. market.
Step-by-step explanation:
Everything else held constant, a stronger dollar benefits American consumers and hurts American businesses. This is because a stronger dollar makes importing goods cheaper for American consumers, as they can purchase more with their money. However, it makes exporting more expensive and less competitive for American businesses, since foreign buyers will have to pay more for American goods due to the strong dollar.
On the other hand, a stronger dollar is beneficial for foreign businesses exporting to the United States. With a stronger U.S. dollar, foreign firms can convert their dollar earnings into more of their home currency, potentially increasing their profits. This could lead foreign firms to expand sales in the U.S. market or reduce prices, which in turn would lead to consumers buying more imported goods.
Consequently, the correct answer is C) American consumers; American businesses.