Question

What does it mean by a “strong vs. weak dollar?”

Answer choices:
A. A weak dollar encourages imports
B. A weak dollar encourages exports
C. A strong dollar encourages exports

Answer 1

The answer, B, A weak dollar encourages exports

Step-by-step explanation:

A strong dollar buys more foreign currency --> trade deficit --> encourages imports

A weak dollar buys less foreign currency --> trade surplus --> encourages exports

Hope that this helps :)