Question by cross_moon46: Believe the United States at the moment is running a trade deficit. What affect will the adjust in the overseas curr
Assume the United States at the moment is jogging a trade deficit. What affect will the modify in the foreign forex exchange market have on the trade deficit?
A. The trade deficit will get more compact.
B. The trade deficit will stay unchanged.
C. The trade deficit will get larger.
Solution by cobra
the price of the dollar shrinks creating American goods a far better bargain, therefore it could reduce the trade deficit,
the falling greenback also can make buying imported items much less desireable, so in a way you get a synergistic influence that would consequence is answer ” A”
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