How does a decrease in value of a country's currency relative to other currencies affect its balance of trade?
A) A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and reduces the balance of trade.
B) A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and reduces the balance of trade.
C) A decrease in value of a country's currency relative to other currencies reduces imports, raises exports, and increases the balance of trade.
D) A decrease in value of a country's currency relative to other currencies raises imports, reduces exports, and increases the balance of trade.
Answer: C
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If the price of a good is below the equilibrium
a. the inventories of producers will fall and the market price will tend to rise. b. the inventories of producers will rise and the market price will tend to fall. c. the inventories of producers will fall and the market price will tend to decline. d. the inventories of producers will increase and the market price will tend to rise.
Refer to Table 10-6. What is Jay's optimal consumption bundle?
A) 1 burger and 2 cans of Pepsi B) 2 burgers and 3 cans of Pepsi C) 3 burgers and 2 cans of Pepsi D) 3 burgers and 1 can of Pepsi