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depreciating the dollar.
depreciating Currency Appreciation and Depreciation
Depreciation D D2
$1.00 .50 S D
A Dollar price
of another currency
[yen] Equals increases International
value of dollar
depreciates) Exports increase
Imports decrease [$1 to $1.50] D3 # of Yen Dollar price
decreases [$1 to .50] International Equals value of dollar rises (dollar
appreciates) Imports increase
Exports decrease Balance of Trade in Goods [“R” iis Recession]
$1.00 .50 “Direct” relationship between “Y” & “M” D2 S D
D # of Yen A Strong and Weak Dollar
Dollar” Exports Imports Appreciation/Depreciation NS  14. If the dollar depreciates relative to the peso, the peso will (appreciate/depreciate) relative to the dollar.
15. Appreciation of the dollar will tend to (increase/decrease) American imports & (increase/decrease) American exports.
16. The yen price of the dollar has decreased from 150=$1 t...
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