Question

In: Economics

A decrease in the value of the dollar is called_____ and will result in a _____

A decrease in the value of the dollar is called_____ and will result in a _____

Select one:

a. appreciation of the dollar, a increase in exports and decrease in imports

b. appreciation of the dollar, a decrease in exports and an increase in imports

c. depreciation of the dollar, a increase in exports and decrease in imports

d. depreciation of the dollar, a decrease in exports and an increase in imports

Solutions

Expert Solution

If we talk in simple terms then when any currency value decreases then we called that the currency depreciates

so here the dollar is depreciating

now when any currency depreciates then it will lead to increase in export and decrease in import

so the correct answer here is option C


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