Asked by
Nevena Vojinovic
on Oct 11, 2024
Verified
Depreciation of the dollar will tend to
A) decrease the prices of both American imports and exports.
B) increase the prices of both American imports and exports.
C) decrease the prices of the goods Americans import,but increase the prices to foreigners of the goods Americans export.
D) increase the prices of the goods Americans import,but decrease the prices to foreigners of the goods Americans export.
Depreciation Of The Dollar
A decrease in the value of the U.S. dollar relative to other currencies in the global market.
American Imports
American Imports are goods and services bought by residents of the United States from other countries.
- Review the implications of currency depreciation and appreciation on trade equilibrium.
Verified Answer
RS
Learning Objectives
- Review the implications of currency depreciation and appreciation on trade equilibrium.
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