The U.S. balance of trade deficit would be ____ if the dollar appreciates against all currencies,...
The U.S. balance of trade deficit would be ____ if the dollar appreciates against all currencies, holding other things equal (assume that substitutes are readily available in the countries, and the the prices charged by firms remain the same)
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Answer is increase
Since dollar appreciates it means value of other currencies would decline....Which means more currency would be required to purchase US $.
Thus US balance of trade deficit would increase
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The U.S. balance of trade deficit would be ____ if the dollar
appreciates against all currencies,...
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