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Taverna Is a Manufacturing-Dependent Nation

Question 38

Multiple Choice

Taverna is a manufacturing-dependent nation. The Taverna government plans to increase the supply of the national currency by a major proportion in an effort to devalue the currency in international markets. In this scenario, the Tavernan government prefers to have its currency undervalued in an effort to:


A) pay off foreign debts easily.
B) help drive exports.
C) make goods more expensive in world markets.
D) encourage citizens to buy foreign-produced products.

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