If the USDollar Depreciates in the Foreign Exchange Market,U

question 94

Multiple Choice

If the U.S.dollar depreciates in the foreign exchange market,U.S.exports will be __________ and U.S.imports will be __________.

• A) relatively less expensive; relatively less expensive
• B) relatively less expensive; relatively more expensive
• C) relatively more expensive; relatively more expensive
• D) relatively more expensive; relatively less expensive
• E) unaffected; relatively less expensive

---

Definitions:

Nonrival

A characteristic of a good or service where its use by one person does not reduce its availability to others.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of economic activity.

Demand-side Market Failure

A situation where the quantity of a product demanded by consumers does not equate to the quantity supplied by producers due to externalities or imperfect information, leading to an inefficient allocation of resources.

Efficient Amount

The quantity of a good or service that maximizes social welfare, taking into account all costs and benefits.