A low exchange rate for the dollar makes foreign currencies:
A)cheaper, lowering the price of imports.
B)cheaper, raising the price of imports.
C)more expensive, lowering the price of imports.
D)more expensive, raising the price of imports.

Question

Quizplus · Accepted Answer

A low exchange rate for the dollar means that you need more dollars to buy the same amount of foreign currency, making foreign currencies more expensive. This, in turn, raises the price of imports since you're paying more in dollar terms for goods priced in foreign currencies.

A Low Exchange Rate for the Dollar Makes Foreign Currencies