Question

Explain why a weaker dollar could affect the U.S. balance of- trade deficit.​

Answer 1

Answer:

. It makes U.S. imports cheap and may increase U.S. imports. A weaker home currency increases the prices of imports purchased by the home country and reduces the prices paid by foreign businesses for the home country's exports.

Answer 2

Answer:

A stronger dollar makes U.S. exports more expensive to importers and may reduce imports. It makes U.S. imports cheap and may increase U.S. imports.