Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increase in exports
B
Decrease in exports
C
No effect on exports
D
Exports will become cheaper
Understanding the Answer
Let's break down why this is correct
Answer
When a country’s currency appreciates, it means that its money becomes stronger compared to other currencies. This often leads to more expensive prices for the country’s goods when sold abroad. For example, if a U. S. dollar becomes more valuable against the euro, American products might cost more for buyers in Europe.
Detailed Explanation
When a country's currency gets stronger, its goods become more expensive for other countries. Other options are incorrect because Some might think that a stronger currency means more exports; It's a common mistake to think that currency changes don't matter.
Key Concepts
exchange rates
Topic
Impact of Currency Appreciation
Difficulty
easy level question
Cognitive Level
understand
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