if the prices in the US fall at the same time that the dollar appreciates, we...

if the prices in the US fall at the same time that the dollar appreciates, we will be able to immediately predict the impact on net exports

T/F

Expert Solution

1. True. The appreciation of the currency will increase the level of imports towards the domestic economy. The exchange rate was appreciated under this circumstance. This will make the import cheaply and the export becomes expensive. This appreciation of currency will increase the demand for foreign goods and services. Thus there was high outflow of capital towards the foreign countries.

Rahul Sunny answered 2 years ago

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