Other things the same, if the exchange rate changes from 9.2 Renminbi per dollar to 4.7 Renminbi per dollar, the dollar has
depreciated and buys fewer foreign goods.
Is Renminbi stronger or weaker? Is US$[0] stronger or weaker? Remember, a stronger dollar can buy more foreign goods.
Other things the same, if the exchange rate changes from 8.2 Yen per dollar to 4.6 Yen per dollar, the dollar
depreciates so US goods become less expensive relative to foreign goods.
Is Yen stronger or weaker? Is US$[1] stonger or weaker. Remember, stronger currency can buy more foreign goods.
Other things the same, if the exchange rate changes from 3.8 Euros per dollar to 5.4 Euros per dollar, the dollar
appreciates so US goods become more expensive relative to foreign goods.
Is Euros stronger or weaker? Is US$[2] stonger or weaker? Remember, stronger currency can buy more foreign goods.
A depreciation of the U.S. exchange rate induces U.S. consumers to buy
more domestic goods and fewer foreign goods.
Is US$[3] stronger or weaker? Remember, a stronger currency can buy more foreign goods.
An appreciation of the U.S. exchange rate induces U.S. consumers to buy
fewer domestic goods and more foreign goods.
Is US$[4] stonger or weaker? Remember, stronger currency can buy more foreign goods.
Other things the same, if the exchange rate changes from 0.4 Euros per dollar to 6.5 Euros per dollar, then the dollar
appreciates, which causes US net exports to decrease.
Is Euros stronger or weaker? Is US$[5] stronger or weaker? Remember, a stronger currency can buy more foreign goods.
Other things the same, if the exchange rate changes from 7.1 Renminbi per dollar to 2 Renminbi per dollar, then the dollar
depreciates which causes US net exports to increase.
Is the Renminbi stronger or weaker? Is US$[6] stonger or weaker? Remember, stronger currency can buy more foreign goods.
Box 1: Select the best answer
Box 2: Select the best answer
Box 3: Select the best answer
Box 4: Select the best answer
Box 5: Select the best answer
Box 6: Select the best answer
Box 7: Select the best answer