If a nation's currency depreciates, this will tend to
A)shift a nation's balance of trade toward a deficit.
B)cause a deficit in the government's budget (expenditures - revenues).
C)make foreign goods more expensive for the nation's citizens.
D)make foreign goods cheaper for the nation's citizens.

Question

Quizplus · Accepted Answer

When a nation's currency depreciates, it means that it has less purchasing power relative to foreign currencies, making foreign goods more expensive for the nation's citizens.

If a Nation's Currency Depreciates, This Will Tend to