Question

If the price of buying a car starts rising in the United States, consumers may need to look no further than the Dollar's recent slide against major foreign currencies.On the other hand, economically depressed Midwestern farmers may find it easier to sell surplus grain overseas if a weak Dollar makes it cheaper for foreigners to buy U.S. goods.The Dollar spent much of last week on the skids, flirting with its lowest level of the year against the Japanese Yen...It also has lost ground to the Euro. The situation described in the passage would MOST LIKELY result in

A) stable foreign demand for U.S. goods.
B) stable U.S. demand for foreign goods.
C) increased foreign demand for U.S. goods.
D) increased U.S. demand for foreign goods.

Answer 1

increased foreign demand for U.S. goods.

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Answer 2

increased foreign demand for U.S. goods.

Step-by-step explanation:

Two important pieces of information that we can take from the excerpt:

- The U.S dollar was flirting with its lowest level of the year against the Japanese Yen

- The U.S dollar has lost ground to the Euro.

All of these means that our Dollar is losing value over other currencies. When this happen, Foreign customers could obtain more goods with the same amount of currency. This will lead to increased foreign Demands for U.S Goods. The demand will keep increasing until the position of U.S Dollar becomes stable again.