Depreciation of the dollar means all except
A) dollar is now cheaper in terms of other currencies.
B) demand for U.S. products will rise.
C) general price level in the United States has increased.
D) dollar value is higher in terms of other currencies.
E) price of U.S. exports will fall in terms of foreign currencies.

Question

Quizplus · Accepted Answer

Depreciation of the dollar means the value of the dollar has decreased in terms of other currencies. Therefore, option D, which states that the dollar value is higher in terms of other currencies, is not correct. The other options are correct: A) the dollar is now cheaper in terms of other currencies, B) demand for U.S. products will rise, C) general price level in the United States has increased, and E) price of U.S. exports will fall in terms of foreign currencies.

Depreciation of the Dollar Means All Except