If, in a demand curve/supply curve graph with the quantity of U.S. exports plotted on the horizontal axis and the price of U.S. exports in dollars plotted on the vertical axis, suppose that, from an initial equilibrium position, there is now a depreciation of the U.S. dollar relative to other currencies. (Assume that the supply curve is horizontal.) Other things equal, this depreciation of the dollar would cause the __________.

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A depreciation of the U.S. dollar relative to other currencies makes U.S. exports cheaper for foreign buyers. As a result, demand for U.S. exports is likely to increase, causing the demand curve to shift to the right (or vertically upward). Since the supply curve is horizontal, it remains in its original position. Therefore, the new equilibrium occurs at a higher quantity and a higher price than before the depreciation of the dollar.

If, in a Demand Curve/supply Curve Graph with the Quantity