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Exchange Rates
Strong vs. Weak CurrencyExchange Rates:The price at which currency can be bought and sold
1Weak DollarStrong DollarDepreciated Value (foreign currency more valuable)
Exports cheaper abroad (Balance of Trade improves)
Imports more expensiveAppreciate Value
Exports expensive to foreign countries (who does that hurt?)
Imports are cheaper (Trade Deficit)US Balance of Trade; 1997-2004
US Balance of Payments; 2001
Which is strongest?Exchange Rates: The price at which currency can be bought and slod
When was the US $ stronger?