An increase in the international value of the United States dollar will most likely benefit which of the following groups?

• A. U.S. exporters selling goods abroad
• B. Foreign consumers buying U.S. goods
• C. U.S. producers competing with foreign imports
• D. U.S. consumers purchasing imported goods

Answer: (D)

Verified step by step guidance

1. Understand the concept of exchange rates: An increase in the international value of the U.S. dollar means the dollar has appreciated relative to other currencies.
2. Analyze the effect of a stronger dollar on U.S. exporters: Since foreign buyers need more of their own currency to buy one dollar, U.S. goods become more expensive abroad, which tends to hurt U.S. exporters.
3. Consider the impact on foreign consumers buying U.S. goods: Because the dollar is stronger, U.S. goods become more expensive for foreign consumers, so they are less likely to benefit.
4. Examine the effect on U.S. producers competing with foreign imports: A stronger dollar makes foreign goods cheaper in the U.S., increasing competition for domestic producers, which can harm them.
5. Evaluate the benefit to U.S. consumers purchasing imported goods: A stronger dollar means U.S. consumers can buy more foreign goods for the same amount of dollars, effectively making imports cheaper and benefiting these consumers.