When the Exchange Rate Increases (E

Multiple Choice

When the exchange rate increases (e.g., when the dollar appreciates) ,

A) the dollar price of foreign goods becomes higher while the foreign price of U.S. goods becomes lower.
B) the dollar price of foreign goods becomes higher and the foreign price of U.S. goods becomes higher.
C) the dollar price of foreign goods becomes lower while the foreign price of U.S. goods becomes higher.
D) Both a and c are correct.