If the United States reduces its tariffs on the import of natural gas
A) the dollar's exchange value depreciates
B) the dollar's exchange value appreciates
C) natural gas becomes more expensive for Americans
D) natural gas prices do not change for Americans

Question

Quizplus · Accepted Answer

If the United States reduces its tariffs on the import of natural gas, the dollar's exchange value will depreciate. This is because the United States will be importing more natural gas, which will increase the demand for foreign currency and cause the dollar to depreciate.

If the United States Reduces Its Tariffs on the Import