4.4.2 Test (CST) Global Economics
Question 11 of 20
What would most likely happen if the value of the U.S. dollar rose?
A. Imports would become less expensive.
B. The United States would develop a trade surplus.
C. The United States would develop a trade deficit.
D. Exports would become less expensive.
SUBMIT

A rise in the value of the U.S. dollar would lead to higher prices for American exports, potentially causing a trade deficit and an increase in imports.

Explanation:

If the value of the U.S. dollar rose, it would make exports more expensive for other countries as they would need more dollars to purchase American goods. This would likely result in a decrease in exports, a trade deficit, and an increase in imports. As a consequence, the United States would develop a higher trade deficit, impacting the country's economy.

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