Answer:
Other things equal, an appreciation of the U.S. dollar would:
decrease net exports and decrease aggregate demand.
Explanation:
The immediate effect of an appreciation of U.S. dollars is the decrease of net exports to other countries because the importers will find that importing goods from the U.S. is more expensive than importing from some other countries. This drop caused by decreased exports also decreases aggregate demand of U.S. goods. Therefore, excess inventory of U.S. goods in producers' warehouses will result, thus, reducing national productivity and GDP.
