Pregunta
Question 12
A depreciation in the U.S. dollar on the foreign exchange market will
(1) encourage U.S. consumers to travel abroad.
(3) make imports less expensive for U.S. consumers.
(4) make U.S. exports cheaper for foreign consumers.
(2) more expensive to foreigners.
(4)
A depreciation in the U.S. dollar on the foreign exchange market will
(1) encourage U.S. consumers to travel abroad.
(3) make imports less expensive for U.S. consumers.
(4) make U.S. exports cheaper for foreign consumers.
(2) more expensive to foreigners.
(4)
Ask by Murray Salazar. in Cayman Islands
Mar 31,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
Responder
A depreciation in the U.S. dollar makes U.S. exports cheaper for foreign consumers.
Solución
- A depreciation in the U.S. dollar means that one dollar now buys fewer units of a foreign currency.
- In terms of exports, this implies that U.S. goods become cheaper for foreign consumers, because they need to spend fewer of their own currency to buy U.S. products.
- Mathematically, if the exchange rate changes from
units of foreign currency to units of foreign currency with , then U.S. exports cost less in terms of the foreign currency.
Thus, the correct answer is:
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Simplifique esta solución Mind Expander
When the U.S. dollar depreciates, it means that it buys fewer foreign currencies, making trips abroad more costly for U.S. consumers—so they might actually think twice before booking that exotic vacation. On the bright side, U.S. exports become cheaper for foreign consumers, which can boost demand and potentially help American businesses thrive in the global market.
Ever heard of a “currency war”? It’s a funky term referring to countries trying to devalue their currency to gain competitive export advantages. While it sounds like a game, it can create tension in international economics, like trying to win at Monopoly but nobody wants to trade with you!
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