If the real exchange rate is appreciating, then a country's exports are becoming:
A) cheaper.
B) more expensive.
C) less expensive.
D) unobtainable.
E) more abundant.

Question

Quizplus · Accepted Answer

When the real exchange rate appreciates, it means the country's currency is gaining value relative to other currencies. This makes its exports more expensive for foreign buyers.

If the Real Exchange Rate Is Appreciating, Then a Country's