U.S. net exports will increase if
A)U.S. income increases
B)the value of the U.S. dollar decreases relative to foreign currency
C)the value of the U.S. dollar increases relative to foreign currency
D)U.S. exports decrease
E)U.S. imports increase

Question

Quizplus · Accepted Answer

A decrease in the value of the U.S. dollar relative to foreign currency makes U.S. exports cheaper for foreign consumers, thereby increasing demand for American goods and services. This leads to an increase in net exports.

U.S. Net Exports Will Increase If