When the exchange rate falls, imports ________ and exports ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) decrease; do not change

Question

Quizplus · Accepted Answer

When the exchange rate falls, imports become relatively more expensive and thus decrease, while exports become relatively cheaper and increase.

When the Exchange Rate Falls, Imports ________ and Exports ________

When the Exchange Rate Falls, Imports and Exports