Answer to Question #30433 in Macroeconomics for rahma

Question

When the U.S. dollar appreciates relative to the Indonesian rupiah what happens?

Answer 1

With the US dollar getting stronger than the rupiah, US citizens can purchase more and Indonesians can't. In this case
Indonesian goods will be cheaper in USA and US citizens will have possibility
to buy more imported Indonesian goods. But US goods will be more expensive for
Indonesians, so they will buy less imported US goods.