Other things equal, when the U.S.dollar depreciates, domestic exports rise at every level of domestic income.

Name: Other things equal, when the U.S.dollar depreciates, domestic exports rise at every level of domestic income.
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Question

Quizplus · Accepted Answer

A depreciated currency makes exports cheaper for foreign buyers, leading to an increase in demand and thus an increase in domestic exports, regardless of the level of domestic income.

Other Things Equal, When the U