When the U.S. dollar decreases in value relative to foreign currencies, the
A) demand for U.S. exports will decrease.
B) supply of U.S. exports will decrease.
C) demand for U.S. exports will increase.
D) supply of U.S. exports will remain constant.

Question

Quizplus · Accepted Answer

When the U.S. dollar decreases in value relative to foreign currencies, U.S. exports become relatively cheaper for foreign buyers, which can increase demand for U.S. exports.