if-the-us-dollar-depreciates-and-imports-decrease-by-50-million-while-exports-in

Question

If the US dollar depreciates and imports decrease by $50 million while exports increase by $70 million, what is the effect on the trade balance?

Accepted Answer

The trade balance improves by $120 million.

Answer

The trade balance remains unchanged.

Answer

The trade balance worsens by $20 million.

Answer

The trade balance worsens by $120 million.

If the US dollar depreciates and imports decrease by \$50 million while exports increase by \$70 million, what is the effect on the trade balance?