Question : When price of a foreign currency falls ______from that foreign country becomes cheaper and ________ increases.
Option 1: Imports, imports
Option 2: Exports, exports
Option 3: Imports, exports
Option 4: Exports, Imports
Correct Answer: Imports, imports
Solution : When price of a foreign currency falls imports from that foreign currency becomes cheaper and increases imports. Hence Option A is correct.
Question : The foreign trade effect suggests that an increase in the price level:
Question : Which of the following best describes appreciation of currency:
Question : What is the impact of a stronger domestic currency on a country's imports and exports?
Question : What is a trade surplus?
Question : What is a trade deficit?
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