Asked by Tishera Brooks on May 05, 2024
Verified
If the currency of your country is depreciating, the result should be to ______ exports and to _______ imports.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) not affect; not affect
Depreciating
A decrease in the value of an asset over time, often due to wear and tear or changes in market conditions.
Exports
Goods or services sent from one country to another for sale or trade.
Imports
The act of bringing goods or services into a country from abroad for sale.
- Comprehend the impact of currency valuation changes on exports and imports.
Verified Answer
BJ
Billy J HamiltonMay 12, 2024
Final Answer :
B
Explanation :
When a country's currency depreciates, its exports become cheaper for foreign buyers, which tends to increase exports. Conversely, imports become more expensive for domestic consumers, leading to a decrease in imports.
Learning Objectives
- Comprehend the impact of currency valuation changes on exports and imports.