Which of the following would decrease the value of the dollar in the long run?
A)a decrease in inflation in the United States relative to other countries
B)a decrease in the demand for American goods relative to goods from other countries
C)an increase in U.S.tariffs on foreign goods
D)a decrease in the supply of dollars on the foreign exchange market

Question

Quizplus · Accepted Answer

If the demand for American goods decreases relative to goods from other countries, then fewer dollars will be needed to purchase those goods, leading to a decrease in demand for the dollar and ultimately decreasing its value in the long run.

Which of the Following Would Decrease the Value of the Dollar