When the real exchange rate depreciates,U.S.goods become ________ for foreign countries and U.S.exports ________.

Question

Quizplus · Accepted Answer

When the real exchange rate depreciates, it means that the foreign currency has appreciated relative to the US dollar. This makes US goods cheaper for foreign buyers, as they can purchase more US goods with the same amount of their own currency. Therefore, US exports increase.

When the Real Exchange Rate Depreciates,U