Which of the following is most likely to happen if the Thai baht depreciates against the euro?
A)The money supply in Thailand will increase.
B)Thailand will have a trade deficit with the euro-area.
C)Thai demand for European goods will increase.
D)The number of European tourists visiting Thailand will increase.

Question

Quizplus · Accepted Answer

When the Thai baht depreciates against the euro, European tourists find their currency has more purchasing power in Thailand, making it a more attractive and cheaper destination for them, likely increasing the number of tourists visiting.

Which of the Following Is Most Likely to Happen If