A fall in the exchange rate (S) may lead to:
A) a rise in the foreign currency price of exports and a fall in the quantity of exports demanded
B) a fall in the foreign currency price of exports and a rise in the quantity of exports demanded
C) no change in the foreign currency price of exports and a rise in the quantity of exports demanded
D) a rise in the foreign currency price of exports and a rise in the quantity of exports demanded

Question

Quizplus · Accepted Answer

A fall in the exchange rate makes exports cheaper in foreign currency, leading to an increase in demand for exports.

A Fall in the Exchange Rate (S) May Lead To