A depreciation in the U.S. dollar on the foreign exchange market will
A) make U.S. exports more expensive to foreigners.
B) make imports less expensive for U.S. consumers.
C) make U.S. exports cheaper for foreign consumers.
D) encourage U.S. consumers to travel abroad.

Question

Quizplus · Accepted Answer

A depreciation in the U.S. dollar on the foreign exchange market makes U.S. exports cheaper for foreign consumers as they can now buy more dollars for their own currency. This potentially leads to an increase in demand for American goods and services which could positively impact the country's trade balance.

A Depreciation in the U