If the Irish Pound Declines in Value Against Other Major

question 22

Multiple Choice

If the Irish pound declines in value against other major currencies, which of the following happens?

• A)The Irish trade deficit will increase.
• B)The Irish trade deficit will be unaffected.
• C)The Irish trade deficit will decrease.
• D)Irish products will become more expensive to foreigners.
• E)Foreign goods will become cheaper in Ireland.

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Definitions:

Annual Profit

The financial gain, often calculated before taxes, that a business makes within one fiscal year.

Homeowner's Policy

An insurance policy that provides coverage for a homeowner against losses or damages to their home and belongings inside it.

Catastrophe

An event causing great and often sudden damage or suffering; a disaster.

Independent of One Another

A condition where the occurrence or outcome of one event does not affect the occurrence or outcome of another.