Which of the following will increase the demand for U.S.products in the international market?
A)An increase in the average price level in the U.S.
B)A depreciation of foreign currency
C)A depreciation of the U.S.dollar
D)A tariff imposed by the U.S.on imported goods
E)A rise in the domestic demand for goods and services

Question

Quizplus · Accepted Answer

A depreciation of the U.S. dollar makes U.S. products relatively cheaper for foreign buyers, which increases their demand.

Answer: B
 A depreciation of foreign currency makes foreign products more expensive for U.S. buyers, which may lead them to shift their demand towards cheaper U.S. products.

Answer: E
 An increase in domestic demand for goods and services may lead to increased production and exports, which can increase demand for U.S. products in the international market.

Therefore, the best choices are C and B.

Which of the Following Will Increase the Demand for U