Appreciation of a currency will lead to:
A)an increase in net exports
B)a reduction in net exports
C)no change in net exports
D)any of the above is equally likely

Question

Quizplus · Accepted Answer

When the currency of a country appreciates, its exports become relatively more expensive for foreign buyers. As a result, the demand for the country's exports decreases, leading to a reduction in net exports.

Appreciation of a Currency Will Lead To