Figure 18.3
-Referring to Figure 18.3, a depreciation of the dollar is represented by a movement from point

Question

Quizplus · Accepted Answer

A depreciation of the dollar means that the value of the dollar falls relative to other currencies, making US goods relatively cheaper and more competitive in international markets. This would lead to an increase in exports and a decrease in imports, which is represented by a movement from point a to c on the graph.

Figure 18.3 -Referring to Figure 18.3, a Depreciation of the Dollar Is