Suppose the dollar is devalued.If an import contract is written in a foreign currency,then the value of U.S.imports:
A) Decrease
B) Increase
C) Stay the same
D) Not possible to answer with the given information

Question

Quizplus · Accepted Answer

If the dollar is devalued, it means the value of the dollar has decreased compared to other currencies. Therefore, when an import contract is written in a foreign currency, it would now require more dollars to purchase the same amount of foreign currency for the import. This would result in an increase in the value of U.S. imports.

Suppose the Dollar Is Devalued