A depreciation of the U.S. dollar will likely cause U.S. exports to _______ and U.S. imports to _______.

Question

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When the U.S. dollar depreciates, it becomes less expensive to buy U.S. goods and services for foreign buyers. This increased affordability, in turn, can stimulate foreign demand for U.S. exports. On the other hand, a weaker currency makes imports more expensive for U.S. consumers and businesses, which can reduce demand for imported goods and services. Therefore, a depreciation of the U.S. dollar is likely to cause U.S. exports to increase and U.S. imports to decrease.

A Depreciation of the U