Answer:
Explanation: A fall in the exchange rate is known as a depreciation in the exchange rate (or devaluation in a fixed exchange rate system). It means the currency is worth less compared to other countries. For example, a depreciation of the dollar makes US exports more competitive but raises the cost of importing goods into the US. If the value of the U.S. dollar declines, the price of the goods produced in America decreases. This makes American-made goods relatively cheaper, which increases the purchase of the goods due to increased domestic consumption as well as increased exports. devaluation happens when a government makes monetary policy to reduce a currency's value; on the other hand, depreciation happens as a result of supply and demand in a free foreign exchange market. Devaluation is a decision that makes a currency lose value. A decline in the value of the dollar will also make our exports cheaper on world markets It will also make the dollar price of our imports more expensive (this is one thing that goes up). This will increase Net Exports. Net exports are a component of Aggregate demand. Hence, Aggregate demand will increase and with it, employment and inflation.