Post Utme Achievers University 2017 Economics Question 8

Practice objective / multiple choice question 8 from the 2017 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2017 Economics Objective / Multiple Choice
Question 8 POST_UTME_ACHIEVERS_UNIVERSITY • 2017 • ECONOMICS • objective

A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. What will happen to the exchange rate in the short run?

Answer Options

A. The exchange rate will appreciate
Correct Answer B. The exchange rate will depreciate
C. The exchange rate will remain unchanged
D. The exchange rate will fluctuate
Correct Answer
B
Correct Option:
The exchange rate will depreciate

About This Question

This is Post Utme Achievers University 2017 Economics Question 8. It is one of the objective questions from the 2017 Post Utme Achievers University Economics examination.

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