How Does an Increase in the Relative Price of a Country's

question 55

Multiple Choice

How does an increase in the relative price of a country's goods in terms of foreign goods,or real exchange rate,affect its balance of trade?

• A)An increase in the real exchange rate raises imports,reduces exports,and reduces the balance of trade.
• B)An increase in the real exchange rate reduces imports,raises exports,and reduces the balance of trade.
• C)An increase in the real exchange rate reduces imports,raises exports,and increases the balance of trade.
• D)An increase in the real exchange rate raises imports,reduces exports,and increases the balance of trade.

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Definitions:

Customer Value Proposition (CVP)

An offering by a company that summarizes why a consumer should buy a product or use a service, highlighting the unique value it provides.

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Customer Value Proposition (CVP)

A business or marketing statement that describes why a customer should buy a product or use a service.