Why Does the Appreciation of a Country's Currency Tend to Decrease

question 89

Multiple Choice

Why does the appreciation of a country's currency tend to decrease its price level?

• A) Domestic buyers tend to substitute domestic products for imports.
• B) A currency appreciation makes a country's products more competitive in world markets, so exports rise.
• C) A currency appreciation makes imported inputs less expensive.
• D) A currency appreciation makes imported inputs more expensive.

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Definitions:

Context Characteristics

The environmental, social, and situational factors that influence behavior, decision-making, and the effectiveness of processes.

Work Performance

The effectiveness and efficiency with which an employee or team accomplishes their assigned duties and tasks.

Boring Tasks

Repetitive or monotonous activities that lack engagement or stimulation, often leading to decreased motivation and satisfaction.

Fragmented

Broken into parts or pieces; often refers to systems, processes, or organizations that lack cohesion or unity.