A Depreciation of One's Currency Means That

question 35

Multiple Choice

A depreciation of one's currency means that:

• A) the country's exports will become more expensive.
• B) the country's imports will become more expensive.
• C) the country's imports will become less expensive.
• D) it now requires less of this currency in exchange for one unit of another currency.

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Definitions:

Buyer

A person or entity that purchases goods or services from another in exchange for money.

Tax

A non-optional financial assessment or alternate form of contribution demanded from a taxpayer by a governmental administration for the purpose of allocating funds for government usage and various public expenditure needs.

Market Period

A very short period of time in which the supply of a good is fixed, typically because the time frame is too short to alter production.

Industry Supply

The total quantity of a good or service that producers in an industry are willing and able to sell at different price levels.