Asked by
Fernanda Beiza
on Oct 11, 2024Verified
A depreciation of the dollar will
A) discourage foreigners from buying U.S.goods.
B) encourage Americans to invest in foreign assets.
C) increase the amounts of U.S.dollars demanded by foreigners.
D) throw the U.S.economy into a recession.
E) lower the U.S.prices of imports.
Dollar Depreciation
A decline in the value of the U.S. dollar relative to other currencies, affecting international trade and investment.
Foreign Assets
Assets owned by residents of a country that are located in foreign countries, including stocks, bonds, real estate, and direct investments.
- Assess the consequences of fluctuations in interest rates and trade policies on currency valuations and trade balances.
- Elucidate the effects of exchange rate fluctuations on global investments and trade patterns.
Verified Answer
IK
Learning Objectives
- Assess the consequences of fluctuations in interest rates and trade policies on currency valuations and trade balances.
- Elucidate the effects of exchange rate fluctuations on global investments and trade patterns.