As is often seen during a recession in the U.S., some domestic businesses profit from a falling dollar.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.

1. 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?
2. Discuss another real-world example of how changing currency values have affected people's daily lives.