Which of the following will most likely result from a decline in the dollar price of a foreign currency?
A)an increase in the inflation rate
B)Foreign goods will become more expensive,and therefore,U.S.imports will decline.
C)U.S.exports will be cheaper for foreigners,and therefore,they will increase.
D)U.S.exports will become more expensive for foreigners,and therefore,they will decrease.

Question

Quizplus · Accepted Answer

A decline in the dollar price of a foreign currency means the dollar has appreciated. This makes U.S. goods more expensive for foreigners, leading to a decrease in U.S. exports.

Which of the Following Will Most Likely Result from a Decline