How Must Currency Contracts Be Structured for a Currency Devaluation

question 34

Multiple Choice

How must currency contracts be structured for a currency devaluation to have a worsening effect on the balance of trade?

• A) Export contracts in domestic currency and import contracts in foreign currency
• B) Export contracts in foreign currency and import contracts in domestic currency
• C) Both contracts in domestic currency
• D) Both contracts in foreign currency

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Definitions:

Relational Aggression

A form of aggression in which harm is caused through manipulation or damage to someone's relationships or social status.

Displaced Aggression

involves redirecting aggressive feelings or actions from the intended target to a more vulnerable or accessible target.

Prosocial Behavior

Prosocial Behavior refers to voluntary actions aimed at benefiting others, such as helping, sharing, and showing compassion.

Empathy

The ability to understand and share the feelings of another person from their perspective, often leading to compassion and support.