When the market value of the dollar falls relative to other currencies around the world,we say that
A)the dollar has appreciated.
B)the dollar has depreciated.
C)the demand for dollars has decreased.
D)the supply of dollars has decreased.

Question

Quizplus · Accepted Answer

When the market value of the dollar falls relative to other currencies, it means that the purchasing power of the dollar has decreased, leading to a decrease in demand for the dollar and an increase in the supply of dollars. This, in turn, causes the value of the dollar to depreciate relative to other currencies.

When the Market Value of the Dollar Falls Relative to Other