The nation of Elbonia has long banned the exportof its highly prized puka shells. A newly electedpresident, however, removes the export ban. Thischange in policy causes the nation’s currency to_________, making the goods Elbonia imports_________ expensive.a. depreciate; lessb. depreciate; morec. appreciate; lessd. appreciate; more
The nation of Elbonia has long banned the exportof its highly prized puka shells. A newly electedpresident, however, removes the export ban. Thischange in policy causes the nation’s currency to_________, making the goods Elbonia imports_________ expensive.a. depreciate; lessb. depreciate; morec. appreciate; lessd. appreciate; more
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
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
Chapter19: International Finance And The Foreign Exchange Market
Section: Chapter Questions
Problem 1CQ
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Question
The nation of Elbonia has long banned the export
of its highly prized puka shells. A newly elected
president, however, removes the export ban. This
change in policy causes the nation’s currency to
_________, making the goods Elbonia imports
_________ expensive.
a.
b. depreciate; more
c. appreciate; less
d. appreciate; more
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