Assume Countries A, B, and C produce goods that are substitutes of each other and that these countries engage in trade with each other. Assume that Country A's currency floats against Country B's currency, and that Country C's currency is pegged to B's. If A's currency depreciates against B, then A's exports to C should ____, and A's imports from C should ____.
A: decrease; increase
B: decrease; decrease
C: increase; decrease
D: increase; increase
A: decrease; increase
B: decrease; decrease
C: increase; decrease
D: increase; increase
举一反三
- The impact of the appreciation of a country's currency on its import and export revenue is (). A: exports decrease, imports increase B: exports increase, imports decrease C: exports increase, imports increase D: exports decrease, imports decrease
- Which of the following will probably not result in an increase in a country's current account balance (assuming everything else constant)? A: A decrease in the country's rate of inflation B: A decrease in the country's national income level C: An increase in government restrictions in the form of tariffs or quotas D: An appreciation of the country's currency E: All of the above will result in an increased current account balance.
- When a country's currency depreciates against the currencies of major trading partners A: the country's exports tend to rise and imports fall. B: the country's exports tend to fall and imports rise. C: the country's exports tend to rise and imports rise. D: the country's exports tend to fall and imports fall.
- Which activity should be regarded as credits in the balance of payments? A: Increase in ownership of domestic assets by foreigners B: Decrease in domestic currency reserves by foreign central banks C: Increase of official reserves by domestic central bank D: Imports of goods and services from foreign countries
- Which one of the following statements is the MOST accurate? （ ) A: A depreciation of a country's currency makes its goods more expensive for foreigners. B: An appreciation of a country's currency makes its goods more expensive. C: A depreciation of a country's currency makes its goods cheaper for foreigners. D: A depreciation of a country's currency makes its goods cheaper.