If the dollar depreciates, U.S. exports will eventually rise and U.S. imports will eventually fall.

Question

Quizplus · Accepted Answer

When the dollar depreciates, it becomes cheaper for foreign buyers to purchase U.S. goods, making American exports more competitive. At the same time, U.S. consumers will be discouraged from buying imports, as they become more expensive. This adjustment process may take time, but eventually, U.S. exports will rise and imports will fall as a result of a weaker dollar.

If the Dollar Depreciates, U