The appreciation of a currency will:
A) balance a trade surplus.
B) have no impact on a country's comparative advantages.
C) worsen a country's comparative advantages.
D) improve a country's comparative advantages.

Question

Quizplus · Accepted Answer

Appreciation of a currency makes a country's exports more expensive and imports cheaper, potentially worsening its comparative advantages by reducing export competitiveness.

The Appreciation of a Currency Will