📚 Learning Guide
Impact of Currency Appreciation
easy

How does currency appreciation typically impact a country's exports?

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Learning Path
Learning Path

Question & Answer
1
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2
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3
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4
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Choose the Best Answer

A

Exports become more expensive for foreign buyers

B

Exports become cheaper for foreign buyers

C

Exports remain unchanged

D

Exports increase regardless of currency value

Understanding the Answer

Let's break down why this is correct

Answer

When a country's currency appreciates, it means that its money has become stronger compared to other currencies. This can make its goods and services more expensive for people in other countries. For example, if a U. S. dollar becomes stronger, a toy that costs $10 in the U.

Detailed Explanation

When a country's currency gets stronger, its goods cost more for buyers in other countries. Other options are incorrect because Some might think that a stronger currency makes goods cheaper for others; It's a common belief that currency changes don't affect prices.

Key Concepts

currency appreciation
Topic

Impact of Currency Appreciation

Difficulty

easy level question

Cognitive Level

understand

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