Question

A depreciation of the U.S. dollar relative to the euro would tend to A. increase U.S....

A depreciation of the U.S. dollar relative to the euro would tend to

A. increase U.S. imports from Germany.

B. increase both U.S. imports from Germany and U.S. exports to Germany.

C. decrease U.S. exports to Germany.

D. increase U.S. exports to Germany.

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Answer #1

An answer is an option (D) increase U.S. exports to Germany.

A depreciation of the U.S. dollar relative to the euro would tend to increase U.S. exports to Germany and reduce Germany exports to the U.S.

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