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A Weak US Dollar Should Have a Positive Effect on the Trade

Question 56

Multiple Choice

A weak U.S. dollar should have a positive effect on the trade deficit because


A) it reduces U.S. companies' price-earnings ratios.
B) it increases a foreign investor's tax rate.
C) U.S. exports are less costly, while imports of foreign goods are more costly.
D) U.S. exports are more costly, while import costs are less costly.

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