What is the depreciation of the dollar most likely to do?
A)Increase imports
B)Decrease imports
C)Increase exports
D)Decrease exports

Question

Quizplus · Accepted Answer

The depreciation of the dollar is most likely to increase exports.
Key Takeaway: When the price of a currency, in particular the U.S. dollar, rises in relation to another currency, economists say that the currency has appreciated. Depreciation is the opposite-when the currency decreases relative to another currency. In case of depreciation of the dollar, it is likely to increase exports, as the same amount of currency in other countries could buy more goods from the United States, making exports much more affordable in other places.

What Is the Depreciation of the Dollar Most Likely to Do