What Are the Implications of a Depreciation of the Dollar

question 222

Multiple Choice

What are the implications of a depreciation of the dollar?

• A) The dollar buys more foreign currency, so it buys more foreign goods.
• B) The dollar buys more foreign currency, so it buys fewer foreign goods.
• C) The dollar buys less foreign currency, so it buys more foreign goods.
• D) The dollar buys less foreign currency, so it buys fewer foreign goods.