2
RCMultiple Choice

Economic Development — Cumulative exam

Question 2 • ISP ONLY: Economics S5000XX

If the value of the US dollar declines in relation to other currencies, goods imported into the United States will

Answer
n
not be allowed to enter the country.
b
become less expensive.
r
remain the same in price.
b
become more expensive.

Explanation

When the US dollar declines in value relative to other currencies, it takes more dollars to buy the same amount of foreign currency. As a result, goods priced in other currencies cost more for US buyers, so imported goods become more expensive.

AI-written and checked against the verified answer.

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