If exports from the United States decrease because of a recession in Europe, all other things equal, the demand for the dollar will decrease.

Question

Quizplus · Accepted Answer

If exports from the United States decrease, this means there will be less demand for the dollar, as foreign buyers will need to purchase fewer dollars in order to buy fewer U.S. goods. Additionally, a recession in Europe may lead to decreased overall demand for goods, which could further decrease demand for the dollar.

If Exports from the United States Decrease Because of a Recession