If the U.S. dollar depreciates, then U.S. exports become _____ expensive abroad and foreign goods become _____ expensive in the United States.

Question

Quizplus · Accepted Answer

When the U.S. dollar depreciates, U.S. exports become less expensive for foreign buyers, making them more competitive abroad. Conversely, foreign goods become more expensive in the United States, as it now costs more dollars to buy the same amount of foreign currency to purchase these goods.

If the US Dollar Depreciates, Then U