If a Nation's Currency Depreciates, This Will Tend to

question 131

Multiple Choice

If a nation's currency depreciates, this will tend to

• A) shift a nation's balance of trade toward a deficit.
• B) cause a deficit in the government's budget (expenditures − revenues).
• C) make foreign goods more expensive for the nation's citizens.
• D) make foreign goods cheaper for the nation's citizens.

---

Definitions:

Isolationist Policy

A foreign policy stance wherein a country minimizes its involvement in international affairs and focuses on its own development.

Monroe Doctrine

A U.S. policy, enacted in 1823, that opposed European colonialism in the Americas, proclaiming any intervention in the Americas as a hostile act against the U.S.

U.S. Policy

A strategic framework developed by the United States government to guide its domestic and foreign decision-making.

Moral Idealism

A philosophical stance emphasizing the importance of moral principles and ideals in determining individual behavior and guiding societal norms.