ctorrao ctorrao

31-07-2024
Business

Answered

Other things being equal, as the price level falls, the exchange rate rises. A rise in the exchange rate leads to a decrease in net exports.

A. True
B. False

Answer :

GinnyAnswer GinnyAnswer

31-07-2024

Final answer:

A rise in the exchange rate leads to a decrease in net exports, making the statement true.

Explanation:

True. A rise in the exchange rate makes U.S. goods and services more expensive for foreigners, leading to a decrease in net exports. This is due to the fact that as the exchange rate rises, it takes more foreign currency to purchase one unit of the domestic currency, making domestic goods relatively more expensive for foreign buyers.

Learn more about exchange rates and net exports here:

https://brainly.com/question/31599117

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