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11 January, 18:20

When a country experiences a depreciation of its currency, it can expect which of these to happen?

a. imports to rise

b. exports to fall

c. balance of trade to worsen

d. balance of trade to improve

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Answers (1)
  1. 11 January, 20:40
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    What we can expect to occur once a country encounters currency depreciation is that, the balance of trade would improve. Though in the downside, can weaken the economy, this could also be beneficial for the firms in the exportation of goods to other countries. The answer would be option D.
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