If a country's currency depreciates, other factors remaining constant, its exports usually become
Correct answer: A. Cheaper for foreign buyers
- A. Cheaper for foreign buyers
- B. More expensive for foreign buyers
- C. Unaffected in foreign currency terms
- D. Illegal in the international market
Explanation
Depreciation lowers the foreign-currency price of domestically produced goods, making exports more attractive to foreign buyers. It also tends to make imported goods more expensive for domestic residents.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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