Suppose a presidential candidate criticizes his opponent by saying his opponent’

Question

Suppose a presidential candidate criticizes his opponent by saying his opponent’s economic policies have made the dollar weaker and cost American factory workers their jobs. This presidential candidate is:

wrong, because a weak dollar makes our factory exports more expensive for foreigners to buy. right, because a weak dollar helps factory workers keep their jobs. right, because a weak dollar makes our factory exports more expensive for foreigners to buy. wrong, because a weak dollar helps factory workers keep their jobs.

Explanation / Answer

wrong, because a weak dollar helps factory workers keep their jobs.

A weak dollar means dollar is relatively cheaper with respect to froign currency. This will lead to increase in exports as goods become relatively cheaper and hence production will increase. Therefore demand for labor will increase and factory workers keep their jobs.

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