Suppose the us dollar appreciates for a period of time and, Ask an Expert

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Suppose the U.S. dollar appreciates for a period of time and then returns to its initial level.

Compare a 10-percent appreciation that lasts for 2 years and a 50-percent appreciation that lasts 6 months.

a. Which of these events hurts U.S. exporters more? Explain.

b. How would the answer be different if currency futures did not exist?

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