After Devaluation,all Other Things Being Equal,exports Will Likely _____ and Imports

question 340

Multiple Choice

After devaluation,all other things being equal,exports will likely _____ and imports will likely _____.

• A) increase;increase
• B) decrease;decrease
• C) increase;decrease
• D) decrease;increase

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Definitions:

Price of Y

This generally refers to the cost required to purchase a specific item or commodity denoted as "Y".

Income

Funds acquired regularly as a result of work or investment ventures.

Utility Function

Represents a consumer's preferences in a way that the utility or satisfaction they get from various goods or services can be measured and compared.

Budget Constraint

A limitation on the consumption choices of individuals or households, based on their income and the prices of goods and services.