Answer
b. exports to fall and imports to rise.
Work Step by Step
The appreciation of currency will make domestic goods more expensive compared to foreign goods. Therefore, exports will decrease and imports will increase.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 32 - Part XI - A Macroeconomic Theory of the Open Economy - Quick Check Multiple Choice - Page 702: 2
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