A decrease in U.S.interest rates leads to
A)a depreciation of the dollar that leads to greater net exports.
B)a depreciation of the dollar that leads to smaller net exports.
C)an appreciation of the dollar that leads to greater net exports.
D)an appreciation of the dollar that leads to smaller net exports.

Question

Quizplus · Accepted Answer

A decrease in U.S. interest rates typically leads to a depreciation of the dollar, making U.S. goods cheaper for foreign buyers, thus increasing net exports.

A Decrease in U.S.interest Rates Leads to