If the U.S.government removes tariffs it had placed on imports from countries that have been accused of deliberately undervaluing their currencies,the price of these imports will ________ and the demand for the undervalued currency will ________.

Question

Quizplus · Accepted Answer

Removing tariffs would make the imported goods cheaper, which would decrease their price. This would likely increase the demand for the foreign currency, as more people would need to purchase it in order to buy the cheaper imports. Therefore, the price of the undervalued currency would likely rise.

If the USGovernment Removes Tariffs It Had Placed on Imports from Countries