Over time, which of the following will most likely result from a depreciation in the exchange rate of the dollar?
a. Inflation will decline.
b. Foreign goods will cost Americans less, and therefore, the imports of Americans will rise.
c. U.S. goods exported abroad will cost less in foreign countries, so foreigners will buy more of them.
d. U.S. goods exported abroad will cost more in foreign countries, so foreigners will buy fewer of them.
C
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If planned investment is greater than actual investment, then aggregate expenditure is less than GDP
Indicate whether the statement is true or false
Wes works as a delivery man and can work as many hours as he likes for $12 an hour. He typically works 40 hours a week. Recently, his pay has been cut, and Wes decides to work:
A. less hours, because the income effect dominates his labor supply decision. B. the same amount, because the price effect dominates his labor supply decision. C. more hours, because the price effect dominates his labor supply decision. D. more hours, because the income effect dominates his labor supply decision.