Question

The situation described in the passage would MOST LIKELY result in
A) stable foreign demand for U.S. goods.
B) stable U.S. demand for foreign goods.
C) increased foreign demand for U.S. goods.
D) increased U.S. demand for foreign goods.

Answer 1

Answer:

C) increased foreign demand for U.S. goods.

Explanation:

The provided text is a common example of what happens when the domestic currency starts to weaken against foreign currencies. When this happens, domestically produced goods have an extremely competitive price overseas, implying that their demand in other countries increases.

Therefore, this situation will result in increased foreign demand for U.S. goods.

Answer 2

Answer: C

Explanation:

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