Asked by Diedre McCoy on Jul 26, 2024

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If the dollar depreciates, U.S. exports will eventually rise and U.S. imports will eventually fall.

Depreciates

The process by which an asset loses value over time, often due to wear and tear or market conditions.

  • Comprehend the effect of inflation rates on the foreign exchange markets and the valuation of currencies.
  • Describe how changes in the economy's growth rates influence trade balances and fluctuations in currency worth.
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MG
Michael GallegosJul 29, 2024
Final Answer :
True
Explanation :
A depreciation in the value of the dollar makes U.S. goods cheaper for foreign buyers. As a result, U.S. exports are likely to become more attractive and eventually rise. On the other hand, foreign-made goods become more expensive for U.S. consumers, which may lead to a reduction in imports over time.