Question: An article on barrons.com observed that the U.S. dollar has been droppingand thats good news for the stock market and companies that get a large

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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a When the article mentions that the US dollar has been dropping it means that the value of the US dollar has been decreasing relative to other curren... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Macroeconomics Questions!