Question

When the U.S. dollar​ depreciates, what happens to exports and imports in the United​ States? As the U.S. dollar​ depreciates, domestic goods become ▼ more expensive cheaper and imported goods become ▼ more expensive cheaper ​, thus ▼ domestic consumers and foreigners foreigners neither domestic consumers nor foreigners domestic consumers will buy more of the​ U.S.-produced goods.​ Hence, U.S. exports will ▼ increase not change decrease and U.S. imports will ▼ not change increase decrease .

Answer 1

Answer: As the US dollar depreciates, domestic goods become cheaper and imported goods become more expensive, thus domestic consumers and foreigners will buy more of the US-produced goods. Hence, US exports will increase and US imports will decrease.