When the dollar depreciates
A) U.S.exporters tend to sell more goods in foreign markets
B) U.S.consumers travel abroad more cheaply
C) More foreign tourists can afford to visit the United States
D) both a and c

Question

Quizplus · Accepted Answer

When the dollar depreciates, U.S. exporters can sell their goods at a lower price in foreign markets, making them more competitive and increasing demand, which leads to increased exports. At the same time, the depreciating dollar makes traveling to the United States more affordable for foreign tourists, leading to an increase in tourism and boosting the economy.

When the Dollar Depreciates