If the value of the U.S. dollar decreases relative to other currencies, the export function will shift upward and the import function will shift downward, thereby shifting the net export function upward.

Question

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When the value of the U.S. dollar decreases relative to other currencies, American exports become cheaper for foreign buyers and therefore more attractive, leading to an increase in exports. At the same time, imports become more expensive for Americans, leading to a decrease in imports. As a result, the net export function shifts upward.

If the Value of the U