Under a flexible exchange rate system, if a country's exchange rate increases, then the currency has:

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In a flexible exchange rate system, if a country's exchange rate increases, then its currency has appreciated. Appreciation refers to an increase in the value of a currency relative to other currencies on the foreign exchange market. This means that the country's currency can buy more of other currencies or goods and services, making its exports more expensive and imports cheaper.

Under a Flexible Exchange Rate System, If a Country's Exchange