In recent years, the U.S. dollar has depreciated substantially against most major currencies of the world, especially against the euro.

Question

Quizplus · Accepted Answer

When a currency depreciates in value, its purchasing power decreases, and it becomes relatively cheaper compared to other currencies. In the case of the U.S. dollar, its depreciation against the euro has made European products more expensive in dollar terms, which reduces the demand for these products in the U.S. On the other hand, American products have become relatively cheaper in euro terms, which increases their demand in Europe. Therefore, both option A and B are correct.

In Recent Years, the U