To the extent that a country sells more goods and services abroad than it buys,there will be:
A)a greater demand for its currency.
B)a surplus production of goods and services.
C)a scarcity of goods and services within the country.
D)a need for revaluation of its currency.
E)time for fluctuating its currency.

Question

Quizplus · Accepted Answer

When a country sells more goods and services abroad than it buys, it earns more foreign currency than it spends. This increased demand for its currency can lead to appreciation in its value, as foreign buyers need the country's currency to pay for its goods and services.

To the Extent That a Country Sells More Goods and Services