If the U.S. dollar depreciates (its exchange rate decreases), what happens to the prices of U.S. Export and U.S. Imports?

If the U.S. dollar depreciates (its exchange rate decreases), what happens to the prices of U.S. Export and U.S. Imports?

If the U.S. dollar depreciates, weaker dollar will boost foreign demand for U.S. Exports.Virtually all U.S. Exports to other countries are invoiced in dollars. Thus foreign purchaserswill try to…

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