Dollar appreciation

Dollar appreciation 

- each dollar gets you more of the other currency. 

-more of the foreign currency is needed to buy each dollar 

-US exports gets more expensive for foreigners 

-US imports get cheaper for us 

-Exports down

- Imports Up 

- GDP down 

- demand for the U.S. Dollar will increase

-supply for the U.S. Dollar will decrease

Dollar Depreciation 

-each dollar gets you less of the other currency 

-exports increase

-imports decrease 

-GDP increase

-U.S. Exports become cheaper to buy

- us imports become more expensive to buy 

-demand for the U.S. Dollar will decrease

-supply for the U.S. Dollar will increase 

Supply of the U.S. Dollar comes from.

US citizen

Banks 

Industries wanting make foreign purchases 

Investments 

Assets 

 Making transfer payment to foreigner  

Demand from the U.S. Dollar comes from 

Foreigner

Banks

Industries wanting to buy us goods 

Investments 

Make transfers payments to us