If the value of the dollar falls relative to other currencies, the price of goods and services produced in the United States will appear:
A)more expensive to U.S. citizens.
B)the same to foreigners.
C)more expensive to foreigners.
D)cheaper to foreigners.

Question

Quizplus · Accepted Answer

When the value of the dollar falls relative to other currencies, it means that foreign currencies can buy more dollars than before. This makes goods and services produced in the United States cheaper for foreigners, as they need to spend less of their own currency to buy the same amount of goods or services.

If the Value of the Dollar Falls Relative to Other