1. What is most likely to happen if the demand for U.S. exports rises and American consumers buy fewer imported goods? (A) The value of the dollar will appreciate. (B) The balance of payments will show a deficit. (C) The exchange rate for dollars will depreciate markedly. (D) The supply of goods will lag behind demand. (E) The value of foreign currencies against the dollar will depreciate. 2. When a nation's currency depreciates, which is the most likely result? (A) Imports will increase. (B) Nominal wages will increase. (C) Fewer people will buy dollars. (D) Import tariffs will be lifted. (E) Exports will increase." 3. Which best describes why a depreciating currency results in decreased imports? (A) Foreign countries take advantage of the depreciated currency to raise prices. (B) The weakened currency has less buying power in the foreign market. [C) It is too risky to buy the depreciated currency on the forex. (D) Tariffs make the price for foreign goods too expensive to import. (E) A country with a depreciated currency will try to reduce imports to avoid large trade deficits