If a country's currency appreciates, the country will experience a ________ in exports and a ________ in imports.

Question

Quizplus · Accepted Answer

If a country's currency appreciates, its exports become more expensive for foreign buyers, making them less attractive. As a result, the demand for exports will decrease, leading to a fall in exports. At the same time, an appreciation of the country's currency will make imports from other countries cheaper. This will make foreign goods more appealing to local buyers, leading to a rise in imports.

If a Country's Currency Appreciates, the Country Will Experience a ________