26
practice examMultiple Choice

Practice Exam

Question 26 • Personal Finance and Economics

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

Answer
A
become more expensive.
B
become less expensive.
C
remain the same in price.
D
not be allowed to enter the country.

Explanation

When the US dollar declines in value, it buys fewer units of other currencies. US buyers therefore need more dollars to pay for goods priced in foreign currencies, so imported goods become more expensive. The correct choice is “become more expensive.”

AI-written and checked against the verified answer.

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