Post Utme Lasu 2021 Economics Question 8

Practice objective / multiple choice question 8 from the 2021 Post Utme Lasu Economics examination.

Post Utme Lasu 2021 Economics Objective / Multiple Choice

Question 8 POST_UTME_LASU • 2021 • ECONOMICS • objective

A country's balance of payments account is in equilibrium. If the country's trade deficit increases, what will happen to its exchange rate?

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 be unaffected

Correct Answer

Correct Option:

The exchange rate will depreciate

This is Post Utme Lasu 2021 Economics Question 8. It is one of the objective questions from the 2021 Post Utme Lasu Economics examination.

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