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

question 85

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.

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Definitions:

Mammary Glands

Specialized organs in mammals that produce milk to feed young offspring.

Adaptive Thermogenesis

The process by which the body adjusts its basal metabolic rate in response to changes in environment or diet to regulate temperature and energy expenditure.

Diet

The sum of food consumed by a person or organism, which can also refer to a regulated eating plan to achieve a specific health- or fitness-related goal.

Burn Fewer Calories

A reduction in the rate at which the body expends energy, typically resulting in weight gain if caloric intake remains constant.