If Sweden's currency depreciates relative to Norway's currency ?
Correct answer: C. Sweden's export goods become cheaper to Norway's residents
- A. Norway's export goods become more expensive to Norway's residents
- B. Norway's exports goods become cheaper to Sweden's residents
- C. Sweden's export goods become cheaper to Norway's residents
- D. Sweden's export goods become cheaper to Sweden's residents
Explanation
When the Swedish currency depreciates against Norway's, Swedish goods become cheaper when priced in Norwegian currency. This makes Sweden's exports more attractive to Norwegian residents.
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