When the U.S.dollar drops in value:
A)exports tend to go up,which decreases the trade deficit.
B)exports tend to fall,which increases the trade deficit.
C)exports tend to go up,which increases the trade deficit.
D)exports tend to fall,which decreases the trade deficit.

Question

Quizplus · Accepted Answer

When the U.S. dollar drops in value, it becomes cheaper for other countries to buy U.S. goods, which increases exports. This decrease in the price of exports tends to decrease the trade deficit. Therefore, choice A is the correct option.

When the U.S.dollar Drops in Value