Forums Economics Assignment Help GCSE A fall in the exchange rate is most likely to lead to which of the following?

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    nammy
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    A fall in the exchange rate is most likely to lead to which of the following?
    A. Higher exports
    B. Increased budget surplus
    C. Increased deficit on the current account of the balance of payments
    D. Lower inflation

    #16082

    nammy
    Participant

    Answer: A- Higher exports
    Reason: A fall in the exchange rate means depreciation of the currency which means exports become cheaper then imports which leads to higher exports.

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