Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It makes imports cheaper for consumers.
B
It increases the cost of imports.
C
It has no effect on import prices.
D
It decreases the quantity of imports available.
Understanding the Answer
Let's break down why this is correct
Answer
When a country's currency appreciates, it means that its money is worth more compared to other currencies. This makes imports cheaper for consumers and businesses because they can buy foreign goods at lower prices. For example, if the U. S. dollar strengthens against the euro, American shoppers may find European products like cars and fashion items less expensive than before.
Detailed Explanation
When a country's currency gets stronger, it can buy more foreign goods. Other options are incorrect because Some might think that a stronger currency makes imports cost more; It's a common mistake to think that currency strength has no effect on prices.
Key Concepts
import dynamics
Topic
Impact of Currency Appreciation
Difficulty
easy level question
Cognitive Level
understand
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