​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:

Feces

Unabsorbed food material and cellular waste that is expelled from the digestive tract.

Rectum

Terminal region of the large intestine; stores digestive waste.

Elimination

The process of removing or expelling waste materials from the body or from an ecological system.

BMI Cutoff

The threshold value of Body Mass Index that is used to categorize individuals into different weight statuses, such as underweight, normal, overweight, or obese.