Does a depreciation in the Dollar lead to a reduction in the US' marginal propensity to import? I thought it would because a weaker dollar makes imports more expensive, so consumers spend less of their income on imports. Is this true?

  • $\begingroup$ A bit. fredblog.stlouisfed.org/2017/09/… $\endgroup$ – Frank Mar 25 '20 at 15:42
  • $\begingroup$ "The recent appreciation of the dollar of 20 percent from 2014 to 2016 worsened the trade balance ratio only slightly. The trade balance’s tepid response is likely because of other changes to trade conditions, such as tariffs and regulations." - Is this because of trade liberalisation under the Obama administration? $\endgroup$ – ABCBAA Mar 25 '20 at 17:05

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