Final answer:
The false statement when the U.S. dollar falls against foreign currencies is that foreign currencies buy fewer dollars. In reality, a weaker U.S. dollar means that foreign currencies buy more dollars, leading to cheaper U.S. exports and reduced foreign imports.
Step-by-step explanation:
When the U.S. dollar falls against foreign currencies, certain economic outcomes are expected. For the question provided, we will look at what is true and what is false about such a scenario.
- U.S. goods become cheaper to foreign countries because they can buy more with their stronger currency, making U.S. products more affordable.
- This increase in affordability often leads to a rise in U.S. exports, as U.S. goods become more competitive abroad.
- On the other hand, foreign currencies buy fewer dollars is incorrect. When the dollar falls, each unit of foreign currency actually buys more dollars, not fewer, because the dollar's value has decreased relative to the foreign currency.
- Because foreign goods cost more for U.S. consumers, foreign imports are likely to fall, as consumers may choose to seek out cheaper, domestic alternatives.
Therefore, the correct answer is StatusC: foreign currencies buy fewer dollars. This statement is false because a weaker U.S. dollar actually means that foreign currencies can buy more dollars.