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Question Practice

What happens when a country's currency depreciates?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Open Economy Macroeconomics
Question Bank

What happens when a country's ...

Single Answer MCQ
Q-00089205

What happens when a country's currency depreciates?

1

Exports decrease and imports increase

2

Exports become cheaper for foreign buyers

3

Inflation rates decrease

4

Trade balance remains unchanged

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