The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-When the U.S. dollar depreciates against other currencies:
A)foreign goods become less expensive to U.S. buyers.
B)U.S. goods become more expensive to foreign buyers.
C)foreign currencies depreciate against the U.S. dollar.
D)the volume of U.S. imports decline.
E)the volume of U.S. exports decline.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-When the U.S. dollar depreciates against other currencies:
A)foreign goods become less expensive to U.S. buyers. 
B)U.S. goods become more expensive to foreign buyers. 
C)foreign currencies depreciate against the U.S. dollar. 
D)the volume of U.S. imports decline. 
E)the volume of U.S. exports decline.

Quizplus · Accepted Answer

When the U.S. dollar depreciates, foreign goods become more expensive for U.S. buyers, leading to a decline in the volume of U.S. imports.

The Figure Given Below Depicts the Foreign Exchange Market for British