Hoding all other factors constant, an appreciation of the US $ versus all other

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

increase the amount of the trade deficit

All of the above

Explanation / Answer

The correct answer is option (A).

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