If a foreign currency _____ relative to the U.S.dollar,Americans will pay less for goods and services bought from sellers in the country that issues the currency.
A)goes up
B)goes down
C)varies
D)is unstable

Question

Quizplus · Accepted Answer

When a foreign currency depreciates (goes down) relative to the U.S. dollar, it means that each dollar can buy more of the foreign currency. This increases the purchasing power of Americans when buying goods and services priced in that foreign currency, making those goods and services cheaper for them.

If a Foreign Currency _____ Relative to the U