​A Weak Home Currency May Not Be a Perfect Solution

question 18

Multiple Choice

​A weak home currency may not be a perfect solution to correct a balance-of-trade deficit because:

• A) ​it reduces the prices of imports paid by local companies.
• B) ​it increases the prices of exports by local companies.
• C) ​it prevents international trade transactions from being prearranged.
• D) ​foreign companies may reduce the prices of their products to stay competitive.

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Definitions:

Egalitarian

Pertaining to the belief that every individual is equal and should have the same rights and chances.

Sensitivity

The quality or condition of being easily affected by external stimuli or being aware of and able to intuitively feel subtle changes or emotions.

Gender Awareness

Recognizing and understanding the social, cultural, and psychological aspects of gender and gender differences, including one's own gender identity.

Concrete External Traits

observable and measurable characteristics of individuals that are tangible and evident in the physical world.