Asked by Alaina Warburton on May 19, 2024
Verified
A decrease in the value of the dollar relative to foreign currencies would _____ the supply of foreign products in the U.S.and _____ the demand for U.S.products in other countries.
A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease
Value Of The Dollar
This refers to the purchasing power of the U.S. dollar, indicating how much goods and services one dollar can buy, both domestically and internationally.
Foreign Products
Goods or services produced in one country and sold or traded in another.
Demand
A schedule of quantities of a good or service that people will buy at different prices; represented by D.
- Understand how exchange rates influence the demand for imported and exported goods.
- Identify the impacts of currency valuation and devaluation on global trade and investment movements.
Verified Answer
Learning Objectives
- Understand how exchange rates influence the demand for imported and exported goods.
- Identify the impacts of currency valuation and devaluation on global trade and investment movements.
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