What happens to aggregate demand when the dollar depreciates? And what happens when households expect lower prices in the future?

The dollar
depreciates in value when a dollar
is worth less relative to another currency. A dollar
appreciates in value
when it increases in value relative to another currency. Currencies
globally
depreciate and appreciate relative to one another based on the economic conditions
in
the countries where the currencies are used and investor
sentiment.

The
dollar depreciating relative to another
currency means that exports from the US to the country
that uses the other
currency will expand, and imports from that country to the US will contract.

If you primarily use the other currency, goods priced in dollars have become cheaper,
which
leads to expanded exports from the US to the other country. If you
primarily use dollars, goods
priced in the...

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