When a Country's Currency Undergoes a Real Appreciation

question 103

Multiple Choice

When a country's currency undergoes a real appreciation:

• A)exports fall and imports rise.
• B)exports rise and imports fall.
• C)the merchandise trade balance becomes positive.
• D)exports and imports do not change.

---

Definitions:

Lowest Terms

A fraction simplified to its most basic form, where the numerator and denominator are the smallest possible integers.

Ratio

A numerical ratio representing how often one number can be divided by another, showing either how many times one is included in the other or vice versa.

Partnership Interest

Ownership share or participation in a partnership that usually entitles the holder to a proportion of the partnership's profits and assets.

Capital Contributions

The funds or assets initially invested in a business or partnership by its owners or partners.