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Q: When exports exceed imports will the us dollar appreciate or depreciate?
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Suppose that US incomes rise relative to British incomes Then?

The dollar will depreciate and the pound will appreciate.


How would you define balance of trade?

The balance of trade, also known as net exports, is the difference between the dollar amount of merchandise exports and the dollar amount of merchandise imports.


An increase in net export?

The country would have to either increase the dollar value of exports or decrease the dollar value of imports.


Has the trade deficit shrunk or expanded?

As may be noted, while the volume of total exports and imports increased in dollar terms over the period, the disparity between merchandise imports and exports widened in the later years.


What are the economic effects of a depreciation of the dollar on foreign exchange markets?

When the dollar depreciates (dollar price of foreign currencies rises), U.S. exports rise and U.S imports fall.


What happens if the euro rises against the dollar?

If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.


Explain what happens if the euro rises against the dollar?

If the Euro rises against the Dollar, this will affect the prices of imports and exports. The prices of European exports to the United States will rise and be less affordable for Americans. The prices of American exports to Europe will fall and become more affordable to Europeans.


What effect will the use of Euro have on the U.S.?

The effect, for exports and imports, will depend on the exchange rate between the dollar and the euro at the time of trading.,


How does a us dollar depreciate?

When the Government produces more of them


When a magazine reports that there has been a depreciation of the dollar what does this mean?

When a magazine reports a depreciation of the dollar, it means that the value of the dollar has decreased relative to other currencies. This can make imports more expensive and exports more attractive, potentially impacting trade balances and economic competitiveness.


What is likely to happen to US imports from and exports to Mexico if the peso depreciates with respect to the dollar?

If the peso depreciates, it means it will be easier to export items from Mexico and in turn it will be harder for items to be imported into Mexico.


What the GBP in terms of currency?

It is often used as an abbreviation for Great Britain Pound when using a keyboard that does not have the squiggly 'L' symbol.