Watch the NBC Learn video clip Some U.S. Businesses Profit from a falling Dollarregarding the depreciation of the U.S. dollar during the last recession. Your text mentions various factors that influence the value of a currency. Consider the effect of perceptions of economic stability. As the U.S. economy weakens, foreign investors demand less dollars.
- How does the lower demand for U.S. dollars affect the value of the U.S. dollar, and consequently, is this good or bad for U.S. businesses looking to sell abroad?
- Discuss another real-world example of how changing currency values have affected people's daily lives.