Question

When the United States dollar depreciates, which of the following is a likely effect?

Answer 1

If the dollar depreciates also known as or quote “the exchange rate falls” the relative price of real domestic goods and services falls while the relative price of regular foreign goods and services increases. Hope this helps!

Answer 2

The change in relative prices will increase U.S. exports and decrease its imports.

Step-by-step explanation:

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