If the exchange rate value of the dollar depreciates relative to other currencies, we would expect
A) U.S. exports to decrease.
B) U.S. exports to increase.
C) U.S. imports to increase.
D) aggregate demand in the United States to decrease.

Question

Quizplus · Accepted Answer

When the exchange rate value of the dollar depreciates relative to other currencies, it means that the dollar has weakened in comparison to other currencies. This makes U.S. goods cheaper for foreign buyers, making them more competitive, and increasing demand for U.S. exports. Therefore, we would expect U.S. exports to increase.

If the Exchange Rate Value of the Dollar Depreciates Relative