Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Currency Depreciation leads to:

Options:

Increase in Export

Decrease in Import

Increase in Trade

Decrease in Export

Correct Answer:

Increase in Export

Explanation:

The correct answer is Option (1) → Increase in Export

Currency depreciation typically makes a country's exports cheaper and more competitive in the international market, leading to an increase in exports. At the same time, it makes imports more expensive for domestic consumers, leading to a decrease in imports.

******

QMS