The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country.

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country.

Quizplus · Accepted Answer

A sudden appreciation in the exchange rate of a country makes its exports more expensive and its imports cheaper, leading to a decrease in demand for its exports and an increase in demand for its imports. This results in a deterioration of the terms of trade of the country.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity