Suppose a news article reports,"Dismal jobs report suggests the Fed will lower interest rates." If the Fed does lower interest rates,the dollar will ____________ against foreign currencies,and U.S.goods will become ________________ for foreigners.

Question

Quizplus · Accepted Answer

When the Fed lowers interest rates, it becomes easier to borrow money, which can lead to the dollar losing value against other currencies. This means that U.S. goods become cheaper for foreigners, making them more likely to purchase them. Therefore, the best choice is D, as the dollar will fall against foreign currencies and U.S. goods will become cheaper for foreigners.

Suppose a News Article Reports,"Dismal Jobs Report Suggests the Fed