Principles of Economics, 7th Edition

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 703: 4

Answer

a) appreciate, less

Work Step by Step

Since the nation would have a higher demand for its currency, the currency would appreciate. Since it would then take less of another country's currency to import goods, the imports would then be less expensive.
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