Question

When the international value of the dollar decreases,

a)Americans pay less for foreign goods.
b) the U.S. trade deficit increases.
U.S. imports decrease.
c) Americans would demand more foreign currency.
d) U.S. exports decrease.

Answer 1

A weaker dollar leads to foreign goods being more expensive, which causes a b) decrease in U.S. imports.

Step-by-step explanation:

A weaker dollar refers to a situation where the value of the U.S. dollar decreases relative to other currencies. This can result from various factors, including economic conditions, interest rates, and trade imbalances. A weaker dollar may impact international trade, making exports more competitive but potentially leading to higher import costs.

When the international value of the dollar decreases, it means that the dollar is weaker compared to other currencies. From the perspective of U.S. purchasers, a weaker dollar means that foreign currency is more expensive. This, in turn, leads to foreign goods being more expensive for Americans. As a result, U.S. imports will decrease.

Answer 2

What will likely happen if the international value of the United States dollar has decreased is that the exports of the United States will likely have their exports to rise than decrease. None of the choices above is correct or corresponds to the answer.