An increase in goods purchased from foreign countries causes:

Name: An increase in goods purchased from foreign countries causes:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a country increases its purchases of goods from foreign countries, it typically has to convert more of its currency into foreign currencies to pay for these imports. This increased demand for foreign currencies relative to the domestic currency can lead to a depreciation or fall in the value of the domestic currency, hence option A is correct.

An Increase in Goods Purchased from Foreign Countries Causes