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Exchange Rates and Net Exports
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Exchange Rates and Net Exports
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23. Exchange Rates / Exchange Rates and Net Exports / Problem 3
Problem 3
How does currency appreciation affect a country's ability to purchase foreign goods?
A
It has no effect on the ability to purchase foreign goods.
B
It increases the ability to purchase foreign goods as the currency can buy more foreign currency.
C
It decreases the ability to purchase foreign goods as the currency buys less foreign currency.
D
It only affects the domestic market, not foreign purchases.
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