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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