If the dollar depreciates relative to foreign currency, the dollar price of foreign goods will tend to
A)rise.
B)remain the same.
C)fall.
D)None of the above

Question

Quizplus · Accepted Answer

If the dollar depreciates relative to foreign currency, it will take more dollars to purchase the same amount of foreign currency. Therefore, the price of foreign goods will tend to rise.

If the Dollar Depreciates Relative to Foreign Currency, the Dollar