contestada

if a country places tariffs on imported goods, then its a. currency depreciates which increases exports improving the trade balance. b. currency appreciates which reduces exports leaving the trade balance unchanged. c. currency appreciates which increases exports improving the trade balance. d. currency depreciates which reduces exports leaving the trade balance unchanged.

Respuesta :

If a country places tariffs on imported goods, then its currency appreciates which reduces exports leaving the trade balance unchanged.

Currency depreciation is the depreciation of a national currency against one or more foreign reference currencies, usually in a floating exchange rate regime where no official currency value is maintained. In the same context, a currency appreciation is an increase in the value of a currency.

A currency appreciation is an increase in the value of one currency relative to another. Currencies appreciate each other for a variety of reasons, including government policies, interest rates, trade balances, and business cycles.

A stronger currency helps keep inflation under control as imports become relatively cheap, and these relatively low prices help keep inflation under control. Falling import prices are forcing domestic producers to increase production efficiency to keep domestic prices low and to remain competitive with foreign products.

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