If global trade experts predict that the value of the dollar will soon fall,it will result in:
A)Both the prices of imported goods rising and prices of U.S.goods sold overseas rising,as well.
B)Prices of imported goods rising,but prices of U.S.goods sold overseas falling.
C)Prices of imported goods falling and prices of U.S.goods sold overseas falling,as well.
D)Prices of imported goods falling,but prices of U.S.goods sold overseas rising.

Question

Quizplus · Accepted Answer

If the value of the dollar falls, it becomes cheaper for foreign buyers to purchase U.S. goods, leading to an increase in exports. However, imported goods become more expensive for U.S. consumers, leading to a rise in prices of imported goods. Therefore, the prices of imported goods will rise, but the prices of U.S. goods sold overseas will fall due to increased competitiveness.

If Global Trade Experts Predict That the Value of the Dollar