If the U.S.dollar depreciates in the foreign exchange market,American exports will _ and American imports will _.

A) be more expensive;be more expensive
B) be more expensive;be less expensive
C) be less expensive;be less expensive
D) be less expensive;be more expensive
E) decrease;increase

Question

If the U.S.dollar depreciates in the foreign exchange market,American exports will _____ and American imports will _____.

A) be more expensive;be more expensive
B) be more expensive;be less expensive
C) be less expensive;be less expensive
D) be less expensive;be more expensive
E) decrease;increase

julia balser · Accepted Answer

Final Answer : D, Explanation :  If the U.S. dollar depreciates, it means that it is worth less in comparison to other currencies. This makes American exports cheaper for foreign buyers, which will increase demand for American goods and result in an increase in exports. On the other hand, American imports become more expensive for domestic buyers, which will decrease demand for foreign goods and result in a decrease in imports. Therefore, American exports will be less expensive and American imports will be more expensive.

If the U.S.dollar depreciates in the foreign exchange market,American exports will _ and American imports will _.

A) be more expensive;be more expensive
B) be more expensive;be less expensive
C) be less expensive;be less expensive
D) be less expensive;be more expensive
E) decrease;increase

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Learning Objectives

Related questions

If the U.S.dollar depreciates in the foreign exchange market,American exports will _____ and American imports will _____.A) be more expensive;be more expensiveB) be more expensive;be less expensiveC) be less expensive;be less expensiveD) be less expensive;be more expensiveE) decrease;increase

Definitions

Learning Objectives

Learning Objectives

Related questions

If the U.S.dollar depreciates in the foreign exchange market,American exports will _ and American imports will _.

A) be more expensive;be more expensive
B) be more expensive;be less expensive
C) be less expensive;be less expensive
D) be less expensive;be more expensive
E) decrease;increase