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The Complete Idiot's Guide to Economics, 2nd Edition by Tom Gorman

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The Dollar and the U.S. Economy

A strong dollar—one that can purchase more foreign currency relative to a weak dollar—means that U.S. consumers pay less for imports. It also means that foreign consumers must pay more for U.S. exports.
A weak dollar—one that can purchase less foreign currency relative to a strong dollar—means that U.S. consumers must pay more for imports from foreign nations. However, foreign consumers will pay less for U.S. goods and services, which will help increase production and employment in America.
So the strong dollar and the weak dollar each have positive and negative effects. Think about it: a strong dollar helps U.S. consumers because it makes foreign goods cheaper, yet it hurts U.S. exports and, therefore, U.S. ...

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