Asked by Chyniquia Johnson on Jun 23, 2024
Verified
Depreciation of the dollar will
A) decrease the prices of both U.S. imports and exports.
B) increase the prices of both U.S. imports and exports.
C) decrease the prices of U.S. imports but increase the prices to foreigners of U.S. exports.
D) increase the prices of U.S. imports but decrease the prices to foreigners of U.S. exports.
Depreciation
The reduction in the value of an asset over time due to wear and tear or obsolescence.
Dollar
The basic monetary unit used in the United States and other countries, symbolized by $.
Exports
Goods or services produced in one country and sold to buyers in another country.
- Gain insight into the effects that fluctuations in currency appreciation and depreciation have on the economy of a country.
Verified Answer
DS
Daniel SwindellJun 24, 2024
Final Answer :
D
Explanation :
Depreciation of the dollar makes U.S. goods cheaper for foreigners, increasing demand for U.S. exports, while making foreign goods more expensive for Americans, thus increasing the cost of imports.
Learning Objectives
- Gain insight into the effects that fluctuations in currency appreciation and depreciation have on the economy of a country.
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