When the U.S. exchange rate falls, U.S. goods become _________to foreign residents and U.S. exports _________.

Question

Quizplus · Accepted Answer

When the U.S. exchange rate falls (meaning the value of the U.S. dollar decreases), U.S. goods become less expensive (cheaper) to foreign residents because they can buy more U.S. dollars with their currency. Therefore, U.S. exports increase because they are more affordable to foreign buyers.