If the value of the United States dollar declines in relation to other currencies (fall in exchange rate), goods imported into the United States will become more expensive because while your money is depreciated your buying power is reduced with it, then the national products then will become cheaper. When the dollar value is higher than other currencies their products are cheaper and, the exported goods of U.S is more expensive.
The right answer then would be D!
If the value of the US dollar declines in relation to other currencies, goods imported into the United States will become more expensive.
The value of a currency depends on those factors which affect the economy like imports and exports, inflation, interest rate, exchange rate, deflation, stagflation, foreign reserves, investment, etc.
Currency decline when productivity decreases faster than the supply of money. Decreasing the value of the currency increases the price of goods and caused demand-pull inflation.
Therefore the correct option is D.
Learn more about Currency here:
brainly.com/question/13684639
