If the dollar falls in value compared to other currencies, what will happen in the United States?

Question

Quizplus · Accepted Answer

If the dollar falls in value compared to other currencies, it becomes more expensive to import goods into the United States, which leads to a decrease in aggregate supply. This is because the cost of goods increases, and producers may not be able to produce as much due to increased input costs. As a result, the United States would experience a decrease in aggregate supply.

If the Dollar Falls in Value Compared to Other Currencies