If the currency of your country is appreciating, 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 appreciates, its exports become more expensive for foreign buyers, leading to a decrease in exports. Conversely, foreign goods become cheaper for domestic consumers, leading to an increase in imports.

If the Currency of Your Country Is Appreciating, the Result