A depreciation of the u. S. Real exchange rate induces u. S. Consumers to buy more domestic goods and fewer foreign goods.
What is depreciation?
This is a term that is used to refer to the fall in the value of a currency. It is a fall in the currency of a country compared to that of other currencies.
At a time where there is a depreciation, people would want to buy more of the goods that are made in their country.
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