If the demand for ________ goods decreases relative to ________ goods,the domestic currency will depreciate.

Question

Quizplus · Accepted Answer

If the demand for domestic goods decreases relative to foreign goods, then the demand for the domestic currency will also decrease. This is because foreign buyers will need less of the domestic currency to purchase the decreased amount of domestic goods, leading to a depreciation of the domestic currency.

If the Demand for ________ Goods Decreases Relative to ________

If the Demand for Goods Decreases Relative to