Question

What would most likely happen if the value of the U.S. Dollar fell?

Answer 1

The available options are

A. The United States would develop a trade surplus.

B. Exports would become more expensive.

C. Imports would become more expensive.

D. The United States would develop a trade deficit.

Answer:

Imports would become more expensive.

Explanation:

What would most likely happen if the value of the U.S. Dollar fell is that "Imports would become more expensive."

This is because the exchange rate of U.S dollars against the foreign currency will reduce, thereby making the U.S traders put more money to buy their specific products or quantity of commodities from outside the country.

Hence, in this case, the correct answer is "Imports would become more expensive."