When a Country Devalues Its Currency,it Causes an Increase In

question 68

Multiple Choice

When a country devalues its currency,it causes an increase in:

• A)its imports.
• B)its exports.
• C)the sale of international goods in the domestic market.
• D)the sale of international services in the domestic market.
• E)the cost of American goods abroad.

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Definitions:

Marginal Product

The additional output that results from using one more unit of a particular input while keeping other inputs constant.

Output

The quantity of products or services generated by a business, sector, or economic system over a certain timeframe.

Wage

Compensation or payment to an employee for labor or services rendered, typically expressed on an hourly, daily, or piecework basis.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.