Americans would have to pay more for imported goods if the U.S.dollar were to lose its position as the main reserve currency of the world and the dollar were to depreciate because foreigners no longer bought dollars as they did when the dollar served as the reserve currency.

Question

Quizplus · Accepted Answer

If the dollar were to lose its position as the main reserve currency of the world and depreciate, foreigners would be less likely to buy dollars and demand for the currency would decrease. This would lead to a depreciation of the dollar and an increase in the price of imported goods.

Americans Would Have to Pay More for Imported Goods If