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.