Everything else held constant,a decrease in the value of the dollar relative to all foreign currencies means that the price of foreign goods purchased by Americans

Question

Quizplus · Accepted Answer

Whenever the value of the dollar decreases, it means that it takes more dollars to buy the same amount of foreign currency. Therefore, any foreign goods purchased by Americans will become more expensive, resulting in an increase in their prices.

Everything Else Held Constant,a Decrease in the Value of the Dollar