Figure 19-1

-Of the graphs in Figure 19-1, which one shows the effects of an economic boom in the United States and a depreciation of the dollar?

Question

Figure 19-1
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-Of the graphs in Figure 19-1, which one shows the effects of an economic boom in the United States and a depreciation of the dollar?

Quizplus · Accepted Answer

During an economic boom in the United States, demand for goods and services increases, leading to higher imports. A depreciation of the dollar makes imports more expensive and exports cheaper, encouraging foreign countries to buy more U.S. goods. This scenario typically results in an increase in both imports (due to the economic boom) and exports (due to the cheaper dollar), which is best represented by the graph in option B.

Figure 19-1 ​

Figure 19-1