All of the following are possible explanations for why it took so long for trade balances to respond to the depreciation of the dollar except
A)the prior increase in the value of the dollar had padded the profit margins of foreign producers.
B)foreign trade barriers made it impossible for the United States to substantially expand exports it bought.
C)there were still impacts from earlier appreciations working through the system.
D)exports began to increase from a much lower base than imports.

Question

Quizplus · Accepted Answer

This statement does not provide a plausible explanation for why it took so long for trade balances to respond to the depreciation of the dollar. Foreign trade barriers may have limited the United States' ability to expand exports, but this does not explain why trade balances did not respond to an actual depreciation.

All of the Following Are Possible Explanations for Why It