| When the real exchange rate for the dollar appreciates, U.S. goods become |
| | | A. more expensive relative to foreign goods, which makes exports fall and imports rise. | | | B. less expensive relative to foreign goods, which makes exports rise and imports fall. | | | C. more expensive relative to foreign goods, which makes exports rise and imports fall. | | | D. less expensive relative to foreign goods, which makes exports fall and imports rise. | |
| When the real exchange rate for the dollar appreciates, U.S. goods become |
| | | A. more expensive relative to foreign goods, which makes exports fall and imports rise. | | | B. less expensive relative to foreign goods, which makes exports rise and imports fall. | | | C. more expensive relative to foreign goods, which makes exports rise and imports fall. | | | D. less expensive relative to foreign goods, which makes exports fall and imports rise. | |
C. more expensive relative to foreign goods, which makes exports rise and imports fall.
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