Suppose a news article reports, "Dismal jobs report suggests the Federal Reserve will lower interest rates." If the Fed does lower interest rates, the dollar will _____ in value against foreign currencies, and U.S. goods will become _____ for foreigners.

Question

Quizplus · Accepted Answer

If the Federal Reserve lowers interest rates, it usually leads to a decrease in the value of the dollar against other currencies. This makes U.S. goods cheaper for foreigners, which can stimulate exports and potentially improve the job market.

Suppose a News Article Reports, "Dismal Jobs Report Suggests the Federal