Which of the following is NOT a consequence of having an overvalued currency it acts like a tax on exporters exporters will have to ask for higher prices and may lose competitiveness it tends to lower import quantity it makes it cheaper to buy foreign products and services

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter18: Gaining From International Trade
Section: Chapter Questions
Problem 16CQ
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Which of the following is NOT a consequence of having an overvalued currency
it acts like a tax on exporters
exporters will have to ask for higher prices and may lose competitiveness
it tends to lower import quantity
it makes it cheaper to buy foreign products and services
Transcribed Image Text:Which of the following is NOT a consequence of having an overvalued currency it acts like a tax on exporters exporters will have to ask for higher prices and may lose competitiveness it tends to lower import quantity it makes it cheaper to buy foreign products and services
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