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Over Time, Which of the Following Will Most Likely Result

Question 14

Multiple Choice

Over time, which of the following will most likely result from a depreciation in the exchange rate of the dollar?


A) Inflation will decline.
B) Foreign goods will cost Americans less, and therefore, the imports of Americans will rise.
C) U.S. goods exported abroad will cost less in foreign countries, so foreigners will buy more of them.
D) U.S. goods exported abroad will cost more in foreign countries, so foreigners will buy fewer of them.

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