Answer:
a depreciation of the dollar that leads to greater net exports.
Explanation:
The interest rate is considered "the price of money". When the interest rate is high, more dollar is demanded and appreciated, as economic agents can make a greater profit from buying US bonds (which pay interest-rate). Thus, the dollar becomes more expensive. compared to other currencies. Conversely, when the interest rate decreases, the dollar tends to depreciate against other currencies.
Exports, in turn, are associated with the value between currencies. When the dollar depreciates, it means that more dollars can be bought with the same amount of foreign currency. In terms of trade, this stimulates exports, as dollar depreciation makes American products cheaper for other countries. Consequently, the competitiveness of the American economy increases as a whole.
For example, imagine a foreign company that buys US smartphones. If the rate is 1: 1, ie 1 foreign currency unit buys 1 dollar. Now imagine the Federal Reserve lowering the interest rate by depreciating the dollar so that the new exchange rate is 1: 1.20, ie 1 foreign currency buys $ 1.20. For the foreign company it was cheaper to buy American smartphones, as the dollar depreciated against its currency. In contrast, for the US to buy (import) goods from another country is more expensive. Since the net trade balance is the difference between exports and imports, the economy tends to have a higher net export balance.
Answer:He increased American aid and sent military advisors to train South Vietnam's army. Why did President Kennedy need to appear tough on communism? Republicans blamed Democrats from loosing China to communism
Explanation:
<span>In Hindu belief, the sum of good and bad actions in one's present and past lives is known as "karma".
</span><span>Karma is a word which means the aftereffect of a man's activities and the activities themselves. It is a term about the cycle of circumstances and end results. As per the hypothesis of Karma, the end result for a man, happens in light of the fact that they caused it with their activities. It is an imperative piece of numerous religions, for example, Hinduism and Buddhism.
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