Other fundamental things equal, an increase in the exchange rate value of the domestic currency will make the domestic goods:
A)to be demanded more internationally.
B)less competitive in the international markets.
C)more expensive in the domestic market.
D)more expensive to produce.

Question

Quizplus · Accepted Answer

An increase in the exchange rate value of the domestic currency will make the domestic goods more expensive for foreign buyers, decreasing their demand in the international markets and making them less competitive.

Other Fundamental Things Equal, an Increase in the Exchange Rate