Question

When the dollar is worth less in relation to currencies of other countries, are you more likely to buy american-made or foreign-made electronics? you are more likely to purchase

Answer 1

When the dollar is worth less in relation to currencies of other countries,  you are more likely to purchase American-made product.

How currencies are valued ?

Collective supply and demand determine the value of a currency. Numerous variables, such as interest rates, inflation, capital flows, and money supply, have an impact on supply and demand. Currency is most frequently valued using exchange rates.

What makes a currency more valuable?

When there is a high demand for a currency, it will appreciate in value. Conversely, when there is a low demand for a currency, it will depreciate in value.

A controlled floating exchange rate is what determines the current exchange rates between nations. With a managed floating exchange rate, each currency's value is influenced by the policies taken by its central bank or government in terms of the economy.

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