Which of the Following Occurs If a Country a Depreciates

question 22

Multiple Choice

Which of the following occurs if a country A depreciates its currency relative to country B's currency?

• A) A's export goods become cheaper to A's residents.
• B) A's export goods become cheaper to B's residents.
• C) B's export goods become cheaper to A's residents.
• D) B's export goods become more expensive to B's residents.

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Definitions:

Private Saving

The portion of households' income that is not consumed or paid in taxes, and is instead saved for future use.

Macroeconomist

An economist who focuses on broad issues such as inflation, unemployment, and national economic growth.

Paint Sprayer

A device commonly used in the application of paint, varnish, or other surface coatings, designed to distribute these substances evenly and efficiently over surfaces.

Car Customizing

The process of modifying or personalizing a car to enhance its performance, appearance, or comfort, reflecting the owner's preferences.