Asked by Alaina Warburton on May 19, 2024

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A decrease in the value of the dollar relative to foreign currencies would _____ the supply of foreign products in the U.S.and _____ the demand for U.S.products in other countries.

A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease

Value Of The Dollar

This refers to the purchasing power of the U.S. dollar, indicating how much goods and services one dollar can buy, both domestically and internationally.

Foreign Products

Goods or services produced in one country and sold or traded in another.

Demand

A schedule of quantities of a good or service that people will buy at different prices; represented by D.

  • Understand how exchange rates influence the demand for imported and exported goods.
  • Identify the impacts of currency valuation and devaluation on global trade and investment movements.
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Verified Answer

GS
Gurman SinghMay 24, 2024
Final Answer :
C
Explanation :
A decrease in the value of the dollar would make foreign products relatively more expensive for Americans, decreasing the supply of foreign products in the US. On the other hand, US products would become relatively cheaper for people in other countries, increasing the demand for US products in those countries.