Assume that the supply of U.S.exports is perfectly inelastic.If the dollar is devalued then the total export value in dollars will:
A) Increase
B) Decrease
C) Stay the same
D) Uncertain

Question

Quizplus · Accepted Answer

When the dollar is devalued, U.S. exports become relatively cheaper and more attractive to foreign buyers. Since the supply of U.S. exports is perfectly inelastic, the quantity supplied will remain constant regardless of price changes. Therefore, the total export value in dollars will increase as a result of the devaluation of the dollar.

Assume That the Supply of U