Which of the Following Actions Would Not Tend to Increase

question 25

Multiple Choice

Which of the following actions would not tend to increase the value of a country's currency?

• A) Relatively low interest rates
• B) Government trade policies that limit imports
• C) Relatively low rate of inflation
• D) Restrictions on foreign exchange transactions

---

Definitions:

Lumber

Timber that has undergone transformation into boards and beams, representing an intermediate phase in the creation of wooden materials.

Comparative Advantage

Comparative advantage refers to the ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.

Labor Abundance

A situation where there is a large supply of workers relative to the demand for labor, which can affect wages and employment levels.

Textiles

Fibrous materials, including cloth and fabric, that are woven, knitted, or otherwise processed for use in producing goods like clothing, home furnishings, and industrial products.