An Appreciation of a Country's Currency

question 27

Multiple Choice

An appreciation of a country's currency

• A) decreases the relative price of its exports and lowers the relative price of its imports.
• B) raises the relative price of its exports and raises the relative price of its imports.
• C) lowers the relative price of its exports and raises the relative price of its imports.
• D) raises the relative price of its exports and lowers the relative price of its imports.
• E) raises the relative price of its exports and does not affect the relative price of its imports.

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