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

Question

Quizplus · Accepted Answer

If the currency of a country is appreciating, it means that the value of the currency is increasing compared to other currencies in the foreign exchange market. This makes the country's exports more expensive for foreign buyers, reducing the demand for exports. At the same time, the appreciation makes imports from foreign countries cheaper, increasing their demand in the domestic market. Therefore, the result of currency appreciation is a decrease in exports and an increase in imports.

If the Currency of Your Country Is Appreciating, the Result