Dansaz is one of the largest textile-producing nations. However, little demand exists within the country for its own goods because incomes are traditionally low and most of the produced textiles are too expensive for the average Dansazian. In spite of this, the Dansazian government chooses to keep its currency valuation low. This is likely to:
A) lead to a dip in the demand for Dansazian goods.
B) result in a significant hike in the prices of Dansaz's goods.
C) help in the development of the Dansazian industry.
D) restrict employment opportunities in Dansaz.

Question

Quizplus · Accepted Answer

Keeping the currency valuation low can make Dansazian goods cheaper on the international market, thus potentially boosting exports and aiding in the development of the Dansazian industry.

Dansaz Is One of the Largest Textile-Producing Nations