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Unformatted text preview: A decline in U.S. consumer incomes or a weakening of U.S. preferences for foreign products would reduce U.S. imports and U.S. demand for foreign currencies. So, these currencies would depreciate and the dollar would appreciate. Other things equal, what would be the effects of that depreciation or appreciation on U.S. exports and imports? Dollar depreciation means U.S. exports would increase and U.S. imports would decrease. Dollar appreciation means U.S. exports would decrease and U.S. imports would increase....
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- Spring '11