According to the text, other things being equal, stock prices of U.S. firms primarily involved in exporting could be ____ affected by a weak dollar. Stock prices of U.S. importing firms could be ____ affected by a weak dollar.
A)adversely; favorably
B)favorably; adversely
C)favorably; favorably
D)adversely; adversely

Question

Quizplus · Accepted Answer

A weak dollar makes U.S. exports cheaper and more competitive abroad, potentially boosting sales and profits for exporting firms, hence favorably affecting their stock prices. Conversely, a weak dollar makes imports more expensive, which could hurt the profitability of importing firms, adversely affecting their stock prices.

According to the Text, Other Things Being Equal, Stock Prices