Question

A Weak Dollarby The Columbus Dispatch, September 7, 1999If the price of buying a car starts rising in the United States, consumers may need to look no further than the dollar's recent slide against major foreign currencies.On the other hand, economically depressed Midwestern farmers may find it easier to sell surplus grain overseas if a weak dollar makes it cheaper for foreigners to buy U.S. goods.The dollar spent much of last week on the skids, flirting with its lowest level of the year against the Japanese yen...It also has lost ground to the euro.The passage MOST LIKELY relates toA)the national debt.B)the exchange rate.C)the inflation rate.D)the stock exchange

Answer 1

Answer:

C) the inflation rate.

Explanation:

This article is refers to the currency exchange rate between the US dollar, the Japanese yen, and the euro.

Since the US dollar depreciated against the Japanese yen ($1 buys less yens), the price of imported cars increased. Since the US dollar lost value, American exports were cheaper, so they would naturally increase since they would be more attractive to foreign buyers. In the last part it also mentioned the euro and the similarities with the yen.