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6 April, 19:19

An appreciation in the U. S. dollar would Group of answer choices encourage foreigners to make investments in the United States. discourage foreign consumers from buying U. S. goods. increase the number of dollars it would take to buy a Swiss franc. encourage foreigners to buy more U. S. goods.

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  1. 6 April, 19:31
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    Answer: An appreciation in the U. S dollar will discourage foreign consumers from buying U. S goods.

    Explanation:

    Appreciation is defined as the increase in the worth of a currency against another currency. When there is an appreciation in the United States dollar, its worth has increased in comparison with the currencies of other countries. Currencies trade in a universal marketplace, which implies that the values of the currencies are prone to changes.

    A stronger dollar implies that companies in the United States have more purchasing power when buying goods in other countries. For consumers, a stronger dollar implies that more purchasing power in the local marketplace. This will also lead to foreign consumers being discouraged from purchasing goods in U. S because they've to pay more.
  2. 6 April, 19:46
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    The correct answer is letter "B": discourage foreign consumers from buying U. S. goods.

    Explanation:

    Currency appreciation happens when the value of a currency increases compared to others. This situation causes the exchange rate to increase in foreign countries where the appreciated currency is not the official medium of exchange. In other words, people will have to pay more money for exchanging the currency appreciated.

    Thus, if the U. S. appreciates, people abroad the U. S. in countries where the U. S. dollar is not the official currency will have to pay more money every time they have to use U. S. dollars. As a result, U. S. goods consumption will decrease in that region since they will be worth more in the domestic currency.
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