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Unformatted text preview: less; this increases the amount of the U.S. dollars demanded for current transactions, and decreases the amount supplied for current transactions. When the price of a nation’s currency falls, imports rise and exports fall. When the value of a dollar falls foreigners purchase goods and services produced by the U.S. at a lower price. This benefits the consumers but not the sellers. When the dollar drops it benefits companies that produce goods that are exported, companies that sell the exported goods to foreign countries, and workers in these companies. When the dollar drops it is detrimental to companies that want to consume imported goods, companies that specialize in importing goods and workers in these companies....
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This note was uploaded on 04/03/2008 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08