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AP® Macroeconomics

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International and Domestic Market Relationship in Exports

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Assume United States consumers increase their demand for foreign products and decrease their demand for domestic products. How will this affect unemployment in the United States, the current account of the United States, and the international value of the dollar?

A

US unemployment increases; US current account surplus; and the international value of the dollar increases.

B

US unemployment decreases; US current account surplus; and the international value of the dollar decreases.

C

US unemployment decreases; US current account deficit; and the international value of the dollar increases.

D

US unemployment increases; US current account deficit; and the international value of the dollar decreases.

E

US unemployment increases; US current account deficit; and the international value of the dollar increases.