LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory When a country's central bank intervenes to prevent its currency from appreciating, what is the likely short-run effect on its export-oriented industries?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory When a country's central bank intervenes to prevent its currency from appreciating, what is the likely short-run effect on its export-oriented industries?

Answer

Export competitiveness improves as domestic goods become cheaper in foreign markets

Answer

The policy has no effect since exchange rates adjust automatically in open markets.

Answer

Export competitiveness declines as foreign consumers face higher import prices

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LG 1. Knowledge Comprehension LO 1.1. Generate knowledge of core concept and...

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