teeshamanandhar teeshamanandhar
  • 22-06-2021
  • Business
contestada

What will happen when the country's
currency is undervalued?

Respuesta :

hindabusarriyeh641
hindabusarriyeh641 hindabusarriyeh641
  • 22-06-2021

Answer:

Ur answer is that When the U.S. dollar is undervalued, the cost of a basket of goods in the United States is lower than the cost in Mexico when evaluated at the current exchange rate. To a U.S. tourist, Mexican goods and services would seem more expensive on average. Thus an undervalued currency will buy less in other countries.

Explanation:

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