The depreciation of a country's currency causes the price of imports to

Question

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When a country's currency depreciates, it means that it has decreased in value compared to other currencies. As a result, the cost of importing goods from other countries becomes more expensive, leading to a rise in the price of imports. However, the price of exports from that country becomes more competitive on the global market, which can lead to a decrease in their price. Therefore, the correct choice is B as the price of exports falls, not rises.

The Depreciation of a Country's Currency Causes the Price of Imports