If the United States has a consistent trade deficit with another country (we import more from it than we export to it) , the US dollar will ____ against that country's currency.

A) strengthen
B) weaken
C) either a or b can happen
D) neither a nor b is likely to happen

Question

Fatima Mukalled · Accepted Answer

Final Answer : B, Explanation :  When a country consistently imports more than it exports with another country, it means there is an excess supply of the other country's currency in the foreign exchange market. This excess supply leads to a decrease in demand for the US dollar, causing it to weaken against the other country's currency.

If the United States has a consistent trade deficit with another country (we import more from it than we export to it) , the US dollar will ____ against that country's currency.

A) strengthen
B) weaken
C) either a or b can happen
D) neither a nor b is likely to happen

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Learning Objectives

Learning Objectives

Related questions

If the United States has a consistent trade deficit with another country (we import more from it than we export to it) , the US dollar will ____ against that country's currency.A) strengthenB) weakenC) either a or b can happenD) neither a nor b is likely to happen

Definitions

Learning Objectives

Learning Objectives

Related questions

If the United States has a consistent trade deficit with another country (we import more from it than we export to it) , the US dollar will ____ against that country's currency.

A) strengthen
B) weaken
C) either a or b can happen
D) neither a nor b is likely to happen