When the value of the U.S. dollar fell in the mid-1990s, it:
A)encouraged U.S. imports and exports.
B)discouraged U.S. imports and exports.
C)encouraged U.S. imports and discouraged U.S. exports.
D)discouraged U.S. imports and encouraged U.S. exports.

Question

Quizplus · Accepted Answer

When the value of the U.S. dollar falls, it makes U.S. goods cheaper for foreign buyers, thus encouraging exports. Conversely, foreign goods become more expensive for U.S. consumers, discouraging imports.

When the Value of the U