If the currency of your country is depreciating, the result should be to ______ exports and to _______ imports.

Question

Quizplus · Accepted Answer

When the currency of a country is depreciating, it means that it is losing value relative to other currencies. This makes exports cheaper for other countries, increasing demand for them and ultimately boosting exports. On the other hand, imports become more expensive, discouraging their purchase and resulting in a decrease in imports. Therefore, the correct answer is B – increase exports and decrease imports.

If the Currency of Your Country Is Depreciating, the Result