An autonomous depreciation of the U.S. dollar makes American goods ________ relative to foreign goods and results in a ________ in U.S. net exports,everything else held constant.
A)cheaper;decline
B)cheaper;rise
C)more expensive;decline
D)more expensive;rise

Question

Quizplus · Accepted Answer

When the U.S. dollar depreciates autonomously, American goods become cheaper relative to foreign goods, making them more attractive to both Americans and foreigners. This typically leads to an increase in U.S. exports and a decrease in imports, thereby increasing U.S. net exports.

An Autonomous Depreciation of the U