An article on barrons.com observed that the U.S. dollar has been droppingand thats good news for the

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An article on barrons.com observed that “the U.S. dollar has been dropping—and that’s good news for the stock market and companies that get a large chunk of their sales from overseas.”

a. What does the article mean in stating that the U.S. dollar has been “dropping”? Dropping about what?

b. When the dollar drops, does it take more dollars or fewer dollars to buy another currency, such as a euro, a pound, or a yen?

c. Why does the article note that a dropping dollar is good news for U.S. firms that have a lot of sales outside the The United States? What is the link between the dollar dropping and the sales to people in foreign countries of a U.S. firm like Nvidia, which makes graphics chips?

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Macroeconomics

ISBN: 9780138102494

9th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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