How Does a Decrease in Value of a Country's Currency

question 84

Multiple Choice

How does a decrease in value of a country's currency relative to other currencies affect its balance of trade?

• A)A decrease in value of a country's currency relative to other currencies raises imports,reduces exports,and reduces the balance of trade.
• B)A decrease in value of a country's currency relative to other currencies reduces imports,raises exports,and reduces the balance of trade.
• C)A decrease in value of a country's currency relative to other currencies reduces imports,raises exports,and increases the balance of trade.
• D)A decrease in value of a country's currency relative to other currencies raises imports,reduces exports,and increases the balance of trade.

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Definitions:

Nasal

Pertaining to the nose, including its structure, functions, or conditions affecting it.

Sphenoid

A butterfly-shaped bone at the base of the skull, part of the cranium, and contains the sphenoid sinus.

Ethmoid

A porous bone located between the eyes and forming part of the nasal cavity and the eye sockets.

Zygomatic

Pertaining to the cheekbone or zygoma, which is a bone that forms part of the orbit of the eye and the cheek.