If the U.S. dollar depreciates, then U.S. exports become ____ expensive to foreigners and foreign goods become ____ expensive to U.S. citizens.

Question

Quizplus · Accepted Answer

If the U.S. dollar depreciates, it means that its value has decreased compared to other currencies. As a result, U.S. exports become cheaper for foreign buyers because they would need to spend less of their own currency to purchase the same amount of U.S. goods. On the other hand, foreign goods become more expensive for U.S. citizens because they would need to spend more U.S. dollars to buy the same amount of foreign products.

If the US Dollar Depreciates, Then U