Multiple Choice
In which of the following cases can we conclude, without any further information, that a depreciation of a country's currency will worsen the country's trade balance (or current account balance) .
A) demand curve for exports is horizontal; supply curve of imports is horizontal
B) demand curve for exports is vertical; demand curve for imports is vertical
C) demand curve for exports is horizontal; demand curve for imports is horizontal
D) supply curve of exports is horizontal; supply curve of imports is horizontal
Correct Answer:
Verified
Correct Answer:
Verified
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