If the United States wants to increase its net exports in the short term, it might take steps to
A)increase its GDP.
B)reduce existing tariffs and import quotas.
C)appreciate the dollar compared to foreign currencies.
D)depreciate the dollar compared to foreign currencies.

Question

Quizplus · Accepted Answer

Depreciating the dollar makes U.S. goods cheaper for foreign buyers, increasing exports, while making imports more expensive, reducing them, thus increasing net exports.

If the United States Wants to Increase Its Net Exports