If government policymakers intervene in foreign exchange markets to cause the domestic currency to appreciate:

Question

Quizplus · Accepted Answer

When a government intervenes to cause the domestic currency to appreciate, it makes exports more expensive and imports cheaper. This harms exporters as their goods become pricier for foreign customers, while importers benefit as they can pay less for foreign goods. Therefore, the correct choice is C- this would be harmful to exporters.

If Government Policymakers Intervene in Foreign Exchange Markets to Cause