As the dollar price of a foreign currency (for example,dollars per yen)decreases,foreign goods will be __________ expensive,__________ foreign goods will be purchased,and __________ foreign currency will be demanded.

Question

Quizplus · Accepted Answer

When the dollar price of a foreign currency decreases, it means that the foreign currency is becoming cheaper in terms of dollars. This makes foreign goods less expensive for consumers paying in dollars, leading to an increase in the quantity of foreign goods purchased. As more foreign goods are bought, more of the foreign currency is demanded to pay for these goods.

As the Dollar Price of a Foreign Currency (For Example,dollars