Ceteris paribus,a real depreciation of the dollar will decrease net exports in the United States.

Name: Ceteris paribus,a real depreciation of the dollar will decrease net exports in the United States.
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Question

Quizplus · Accepted Answer

A real depreciation of the dollar makes U.S. goods cheaper for foreigners and foreign goods more expensive for Americans, which tends to increase U.S. exports and decrease imports, thereby increasing net exports.

Ceteris Paribus,a Real Depreciation of the Dollar Will Decrease Net