A(n)________ in U.S. prices will cause a decrease in the demand for U.S. dollars and a(n)________ in the (per dollar)exchange rate.

Name: A(n)________ in U.S. prices will cause a decrease in the demand for U.S. dollars and a(n)________ in the (per dollar)exchange rate.
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Question

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An increase in U.S. prices makes U.S. goods more expensive to foreigners, decreasing the demand for U.S. dollars. This leads to a decrease in the value of the dollar, or the (per dollar) exchange rate.