contestada

An increase in the trade-weighted value of the U.S dollar will most likely result in which outcome? A. U.S. products sold in foreign markets will be higher demand. B. U.S. consumers will be able to buy foreign goods at a lower cost. C.U.S. Businesses will be forced to accept more foreign currency. D. U.S. workers will be able to work in other countries more easily.

Respuesta :

Answer: B

U.S. consumers will be able to buy foreign goods at a lower cost

The correct option is B. An increase in the trade-weighted value of the U.S dollar will most likely result in U.S. consumers will be able to buy foreign goods at a lower cost.

What do mean by trade-weighted index?

A weighted average of a basket of currencies, known as a trade-weighted currency index, represents the significance of a nation's commerce with these nations. An unrefined indicator of a nation's global "competitiveness" is occasionally the trade-weighted currency index.

A gauge of the U.S. dollar's foreign exchange value in comparison to a few different foreign currencies is the trade-weighted dollar. Instead of evaluating the US dollar's value against all other currencies, it provides emphasis or weight to the ones that are most commonly used in international trade.

Learn more about the trade-weighted index here:

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