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A 2019 article in the Wall Street Journal noted, A stubbornly strong dollar is . . . weighing on companies' profits and stoking worries of
A 2019 article in the Wall Street Journal noted, "A stubbornly strong dollar is . . . weighing on companies' profits and stoking worries of slowing U.S. growth." Source: Ira Iosebashvili, "Strong Dollar Casts Shadow over Stock Market Rally," Wall Street Journal, February 12, 2019. a. What did the article mean by a "strong dollar"? By a "strong dollar," the article means that A. a U.S. dollar exchanges for more units of a foreign currency. B. U.S. consumers have stronger preferences for U.S.-made goods relative to foreign imports. C. a U.S. dollar exchanges for fewer units of a foreign currency. D. there are more winners than losers from having a strong currency. Part 2 b. Why might a strong dollar result in lower profits for U.S. companies? A stronger dollar will cause U.S. exports to have higher prices in foreign currencies. As a result, businesses and firms in other countries will demand a smaller quantity of U.S. exports
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