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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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.
Transcribed Image Text: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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