Post Utme Redeemers University 2023 Economics Question 23

Practice objective / multiple choice question 23 from the 2023 Post Utme Redeemers University Economics examination.

Post Utme Redeemers University 2023 Economics Objective / Multiple Choice
Question 23 POST_UTME_REDEEMERS_UNIVERSITY • 2023 • ECONOMICS • objective

A country is experiencing a trade deficit due to an increase in imports. What is the likely effect of this trade deficit on the country's exchange rate?

Answer Options

A. The exchange rate will appreciate
Correct Answer B. The exchange rate will depreciate
C. The exchange rate will remain the same
D. The effect on the exchange rate is uncertain
Correct Answer
B
Correct Option:
The exchange rate will depreciate

About This Question

This is Post Utme Redeemers University 2023 Economics Question 23. It is one of the objective questions from the 2023 Post Utme Redeemers University Economics examination.

View More Post Utme Redeemers University 2023 Economics Questions More Post Utme Redeemers University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support