If a country's currency appreciates,all other things being equal,its exports will decrease and its imports will increase.

Question

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If a country's currency appreciates, it becomes relatively more expensive compared to other currencies. This makes the country's exports more expensive for foreign buyers, reducing demand for them. At the same time, imports become cheaper for domestic buyers, increasing demand for them. Therefore, all other things being equal, an appreciation in a country's currency leads to a decrease in exports and an increase in imports.

If a Country's Currency Appreciates,all Other Things Being Equal,its Exports