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:

Taiga

Terrestrial biome that is a coniferous forest extending in a broad belt across northern Eurasia and North America.

Taiga

A biome characterized by coniferous forests, located in cold climates with short summers and long winters, primarily found in the northern hemisphere.

Coniferous Forest

Forested area generally found in areas with temperate climate and characterized by cone-bearing trees that are mostly evergreens with needle-shaped or scalelike leaves.

Spruce

A type of evergreen coniferous tree belonging to the genus Picea, known for its needle-like leaves and conical shape.