All of the following would cause exports to decline, except:
A) a depreciation of the domestic currency.
B) a decline in foreign income.
C) stricter government regulations on international trade.
D) a decline in foreign preferences for domestic goods.
E) foreign import quotas on domestic products.

Question

Quizplus · Accepted Answer

A depreciation of the domestic currency would make domestic goods cheaper and more attractive to foreign buyers, thereby increasing exports. On the other hand, a decline in foreign income, stricter government regulations on international trade, a decline in foreign preferences for domestic goods, and foreign import quotas on domestic products would all make exports more difficult and decrease their volume.

All of the Following Would Cause Exports to Decline, Except