How can currency depreciation stimulate an increase in net exports? 1. By reducing export costs 2. By reducing import prices Select the answer using the code given below:

Question

SquadPrep · Accepted Answer

1 only. Currency depreciation makes domestic goods cheaper for foreign buyers (effectively reducing their cost in foreign currency), while making imports more expensive, thereby stimulating exports and reducing imports.

Answer

2 only

Answer

Both 1 and 2

Answer

Neither 1 nor 2

How can currency depreciation stimulate an increase in net exports? 1. By reducing export costs 2. By reducing import prices Select the answer using the code given below:

Explanation

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