A weaker U.S. dollar in world exchange markets means that
A) a dollar buys more units of foreign currency than it could before.
B) a dollar buys less units of foreign currency than it could before.
C) a dollar buys the same amount of foreign currency than it could before, with gold backing up the value of the dollar.
D) foreigners buy the dollars that they have.

Question

Quizplus · Accepted Answer

When the U.S. dollar weakens, it means that it is worth less compared to other currencies, which makes it possible to buy fewer units of foreign currency than before. This makes foreign goods more expensive for U.S. consumers, as it takes more dollars to purchase the same amount of foreign currency necessary to buy those goods, and can make U.S. exports more competitive in the global market.

A Weaker U