How Does a Decrease in Value of a Country's Currency

question 84

Multiple Choice

How does a decrease in value of a country's currency relative to other currencies affect its balance of trade?

• A)A decrease in value of a country's currency relative to other currencies raises imports,reduces exports,and reduces the balance of trade.
• B)A decrease in value of a country's currency relative to other currencies reduces imports,raises exports,and reduces the balance of trade.
• C)A decrease in value of a country's currency relative to other currencies reduces imports,raises exports,and increases the balance of trade.
• D)A decrease in value of a country's currency relative to other currencies raises imports,reduces exports,and increases the balance of trade.

---

Definitions:

Formal Operational

A stage of cognitive development in which individuals become capable of abstract thinking and logical reasoning.

Concrete Operational

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events.

Preoperational

A stage in Piaget's theory of cognitive development, occurring from approximately ages 2 to 7, characterized by symbolic thought and egocentrism but a lack of operational logic.

Sensorimotor

Referring to the developmental stage in infants where they explore the world and learn through physical interactions, involving both sensory experiences and motor activities.