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

Question

Quizplus · Accepted Answer

A decrease in the exchange rate value of the domestic currency makes domestic goods cheaper for foreign buyers, thereby increasing international demand for these goods.

Other Fundamental Things Equal, a Decrease in the Exchange Rate