If the dollar depreciates relative to the yuan, then American exports to China will
A) increase.
B) decrease.
C) remain the same.
D) fall to zero.

Question

Quizplus · Accepted Answer

When the dollar depreciates relative to the yuan, exports from the US to China become relatively cheaper for Chinese consumers. This makes American goods more competitive in the Chinese market and increases demand for them, leading to an increase in exports.

If the Dollar Depreciates Relative to the Yuan, Then American