A weaker dollar:
A)raises inflation and contracts the economy.
B)reduces inflation and contracts the economy.
C)raises inflation and expands the economy.
D)reduces inflation and expands the economy.

Question

Quizplus · Accepted Answer

A weaker dollar makes imports more expensive, which can lead to higher prices domestically (raising inflation). It also makes exports cheaper for foreign buyers, potentially increasing demand for domestic goods and services, which can expand the economy.

A Weaker Dollar