Author Question: States may manipulate the price of their currency downward in order to a. increase their trade ... (Read 72 times)

dakota nelson · **on:** Sep 4, 2018

States may manipulate the price of their currency downward in order to

a. increase their trade deficit.
b. encourage emigration.
c. boost their trade surplus.
d. import more foreign goods.

Question 2

One effect domestically of a weak currency is

a. consumers will purchase fewer foreign goods and more domestic goods.
b. the price of domestically priced goods will increase and consumers will purchase more foreign goods.
c. foreign producers will flood the domestic market with goods.
d. overall trade will decline as consumers decrease both domestic and foreign purchases.