Question: The exchange rate effect implies that when the Us interest rates are higher. a)The US dollar appreciates/becomes stronger which will result in lower exports &

The exchange rate effect implies that when the Us interest rates are higher.

a)The US dollar appreciates/becomes stronger which will result in lower exports & higher imports, all other things the same.

b)The level of US interest rates has nothing to do with the international value of the US dollar.

c)The US dollar deprecates/ becomes weaker which will result in lower exports & higher imports all other things the same.

d)The US dollar appreciates/becomes stronger which will result in higher exports & lower imports, all other things the same.

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