When the currency depreciates,a country's
A)exports and imports increase.
B)exports increase,while imports decrease.
C)exports decrease,while imports increase.
D)exports and imports decrease.

Question

Quizplus · Accepted Answer

When a country's currency depreciates, its exports become cheaper relative to other currencies, making them more attractive to foreign buyers. At the same time, imports become more expensive, which can cause a decrease in their demand. Therefore, the best answer is that when the currency depreciates, exports increase, while imports decrease.

When the Currency Depreciates,a Country's