If global trade experts predict that the value of the dollar will soon fall, it will result in
A) both the prices of imported goods rising and prices of U.S. goods sold overseas rising, as well.
B) prices of imported goods rising, but prices of U.S. goods sold overseas falling.
C) prices of imported goods falling and prices of U.S. goods sold overseas falling, as well.
D) prices of imported goods falling, but prices of U.S. goods sold overseas rising.

Question

Quizplus · Accepted Answer

A fall in the value of the dollar means that American consumers will need more dollars to buy foreign goods, so imports would become more expensive. However, a falling dollar would mean U.S. goods would appear less expensive to foreign purchasers since it would take less foreign currency to purchase them.

If Global Trade Experts Predict That the Value of the Dollar