Question
A depreciating U.S. dollar is because it is worth i__ in terms of other currencies.
(A) strengthening: more
(B) weakening less
© a problem for exporters: less
(D) beneficial to importers; more
(A) strengthening: more
(B) weakening less
© a problem for exporters: less
(D) beneficial to importers; more
Ask by Johnston Norris. in the United States
Mar 23,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
A depreciating U.S. dollar means it is worth less in terms of other currencies.
Solution
-
A depreciating U.S. dollar means that its value in terms of other currencies is decreasing.
-
Thus, a depreciating dollar is said to be
. -
When the dollar weakens, it is worth
compared to other currencies. -
Hence, the correct choice is:
.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
The correct answer is (B) weakening less. A depreciating dollar means it’s losing value compared to other currencies, making it “weaker.” This can result in more expensive imports but cheaper exports, as foreign buyers can purchase U.S. goods at a lower cost.
In a global marketplace, changes in currency value can significantly impact trade dynamics. If the dollar is weakening, U.S. products can become more appealing abroad, potentially boosting exports. However, consumers at home might face higher prices for imported goods, reflecting the dollar’s reduced purchasing power.
