Evaluate the following statement:"if lower exchange rates increase a nation's exports, the govermment should do everything in its power to anure that the exchange rate for its cumency is an low as it can possbly beThis statement does nat acknowledge that lower exchange ratesOA couid result in a reluctance from other countries to accept this nation's currency for payment of any goodn or servicesOB. could make a currency virtually worthless.O C. make a nation's imports more expensive.COD. None of the above responses are acknowledged by the statement.

The value of one country's currency in relation to another country's or economic zone's currency is…

Answered: ge that lower exchange rates rom other…

ge that lower exchange rates rom other countries to acoept this natior's currency for payment mly worthless re expensive.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 4CQQ

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Question

Evaluate the following statement:
"if lower exchange rates increase a nation's exports, the govermment should do everything in its power to anure that the exchange rate for its cumency is an low as it can possbly be
This statement does nat acknowledge that lower exchange rates
OA couid result in a reluctance from other countries to accept this nation's currency for payment of any goodn or services
OB. could make a currency virtually worthless.
O C. make a nation's imports more expensive.
COD. None of the above responses are acknowledged by the statement.

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