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How does a decrease in the exchange value of the American dollar affect the ability of the United States to trade with other nations?

If the value of the dollar falls, the United States can afford fewer goods and services from other countries.
If the U.S. dollar’s value falls, it is less expensive for Americans to import products from other countries.
As the value of the U.S. dollar falls, prices for goods and services in other countries will go down.
When the dollar’s value falls, other countries buy fewer goods and services from the United States.

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If the value of the dollar falls, the United States can afford fewer goods and services from other countries, This decreases in the exchange value of the American dollar affect the ability of the United States to trade with other nation.

Explanation:

  • When the US government makes their trade and supply they will create a demand for their products and dollars. While people are buying goods from their market their dollar rate will increases.
  • If their product was not on high demand automatically the dollar value will go down. When the dollar value goes down the import of the country will make difficult.
  • They need to import with a high amount when compared to the period of high demand in dollars or else they will import in less quantity.

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