The larger the percentage of U.S. imports already priced in dollars, the less likely depreciation in the U.S. dollar will be to:
A) decrease prices of imports.
B) increase prices of imports.
C) limit trade imbalances.
D) increase trade with third-party nations.

Question

Quizplus · Accepted Answer

If a large percentage of U.S. imports are already priced in dollars, a depreciation in the U.S. dollar would make those imports more expensive in terms of other currencies. Therefore, the prices of imports would increase.

The Larger the Percentage of U