If a country's currency depreciates,then its exports will cost ________ abroad and its imports will cost ________ domestically.

Question

Quizplus · Accepted Answer

When a country's currency depreciates, it becomes cheaper in relation to other currencies. This means that the country's exports will cost less abroad, making them more attractive and competitive in foreign markets. On the other hand, imports will cost more domestically, as the depreciated currency will have to be exchanged for more foreign currency, leading to an increase in the price of imported goods. Therefore, the correct answer is B: exports will cost less abroad and imports will cost more domestically.

If a Country's Currency Depreciates,then Its Exports Will Cost ________