Ceteris paribus,a weaker U.S.dollar does all of the following except
A)Raise costs of importing agricultural products from abroad to the United States.
B)Raise the dollar value of farmland because it increases foreign demand for U.S.agricultural products.
C)Generate short-run economic profits for farmers because it increases foreign demand for U.S.agricultural products.
D)Reduce the prices paid by U.S.consumers for foreign-grown farm products.

Question

Quizplus · Accepted Answer

A weaker U.S. dollar makes imports more expensive, not cheaper. Therefore, it would not reduce the prices paid by U.S. consumers for foreign-grown farm products; instead, it would increase them. Choices A, B, and C are effects of a weaker dollar that increase costs for imports, raise the value of domestic assets due to increased foreign demand, and generate profits for domestic producers due to increased competitiveness abroad, respectively.

Ceteris Paribus,a Weaker U