Question
The U.S. dollar appreciated substantially from mid-2014 to the first quarter of 2015 against most currencies in the world. Which of the following statement describes
The U.S. dollar appreciated substantially from mid-2014 to the first quarter of 2015 against most currencies in the world. Which of the following statement describes an UNLIKELY event associated with the surge of the U.S. dollar?
a. | If U.S. exporters adopt complete exchange rate pass-through, they will lose price competitiveness in foreign markets. | |
b. | If U.S. exporters adopt pricing to markets, they will lose earnings in dollars. | |
c. | If foreigners borrowed long-term dollar-denominated debt in the years immediately following the 2008 financial crisis, their debt service burden now declines. | |
d. | The dollar surge increases the dollars purchasing power abroad. |
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