Under flexible exchange rates, if the dollar's purchasing power in foreign markets has fallen, the dollar has

Name: Under flexible exchange rates, if the dollar's purchasing power in foreign markets has fallen, the dollar has
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

If a dollar's purchasing power in foreign markets has fallen, it means that the dollar can buy fewer goods or services than before. This implies that the value of the dollar has decreased concerning other currencies, which is defined as depreciation.

Under Flexible Exchange Rates, If the Dollar's Purchasing Power in Foreign