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

Question

Quizplus · Accepted Answer

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.

If the Currency of Your Country Is Depreciating, the Result