A weak dollar means:

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A weak dollar refers to a situation where the value of the U.S. dollar decreases relative to other currencies. This has significant implications for international trade. When the dollar is weak, U.S. goods and services become less expensive for foreign buyers. As a result, exports tend to increase because foreign consumers and businesses find American products more affordable.

On the other hand, imports become more expensive for American consumers and companies, as they need to spend more dollars to purchase goods and services priced in foreign currencies. This typically leads to a decline in imports, as American consumers may seek out domestic alternatives or forego purchases of foreign products.

Therefore, the understanding of how a weak dollar affects exports and imports highlights that such a condition results in higher exports and lower imports, which is why this option is correct.

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