Depreciation of the dollar relative to foreign currencies will tend to increase net exports and thus aggregate demand of the U.S.economy.

Name: Depreciation of the dollar relative to foreign currencies will tend to increase net exports and thus aggregate demand of the U.S.economy.
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Question

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When the dollar depreciates, U.S. goods become cheaper for foreign buyers, increasing exports, while foreign goods become more expensive for U.S. consumers, reducing imports, thus increasing net exports and aggregate demand.

Depreciation of the Dollar Relative to Foreign Currencies Will Tend