How Does an Increase in a Country's Exchange Rate Affect

question 83

Multiple Choice

How does an increase in a country's exchange rate affect its balance of trade?

• A)An increase in the exchange rate raises imports, reduces exports, and reduces the balance of trade.
• B)An increase in the exchange rate reduces imports, raises exports, and reduces the balance of trade.
• C)An increase in the exchange rate reduces imports, raises exports, and increases the balance of trade.
• D)An increase in the exchange rate raises imports, reduces exports, and increases the balance of trade.
• E)A country's exchange rate has no affect on its balance of trade.

---

Definitions:

Richer Channels

communication methods that have the capacity to convey more non-verbal information and foster greater understanding, such as face-to-face conversations.

Effective Communication

The exchange of information or ideas in a clear, understandable, and precise manner, facilitating understanding and action.

Organizational Silos

Isolated departments or units within an organization that work independently and are reluctant to share information with others, leading to inefficiencies.

Lateral Communication

Lateral communication is the exchange of information or messages between individuals or groups at the same hierarchical level within an organization.