What is likely to happen if the value of the currency falls?

Question

Quizplus · Accepted Answer

When the value of a currency falls, it becomes cheaper for other countries to buy goods priced in that currency, making exports more competitive and potentially increasing their demand. This does not directly cause the price of exports to fall; instead, it makes them more affordable to foreign buyers due to the currency value change. Choices A, B, and D are incorrect because a weaker currency typically makes imports more expensive (not cheaper as in A), which could reduce the volume of imports (contrary to B), and is likely to increase the volume of exports (opposite of D) due to their now lower relative price abroad.

What Is Likely to Happen If the Value of the Currency