If the Domestic Currency Is Devalued and Both Export and Import

question 24

Multiple Choice

If the domestic currency is devalued and both export and import contracts are written in foreign currency,then the trade balance will:

• A) Increase
• B) Decrease
• C) Stay the same
• D) Uncertain

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Definitions:

Innovation

The practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services.

Relative Advantage

The degree to which a new product or innovation is perceived as superior to existing alternatives, influencing its rate of adoption.

Bugchaser

An individual who purposely seeks to get infected with sexually transmitted diseases, particularly HIV, for various psychological reasons.

Nonstaining

Describing materials or substances that do not leave stains or marks on surfaces they come into contact with.