Post Utme Unilag 2023 Economics Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Unilag Economics examination.

Post Utme Unilag 2023 Economics Objective / Multiple Choice
Question 39 POST_UTME_UNILAG • 2023 • ECONOMICS • objective

Consider a country with a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. If the country's exchange rate is ₦200 per dollar, and the price of oil is $50 per barrel, what is the impact of a 10% depreciation of the exchange rate on the trade deficit?

Answer Options

A. The trade deficit increases by ₦10 billion
Correct Answer B. The trade deficit decreases by ₦10 billion
C. The trade deficit remains unchanged
D. The trade deficit increases by ₦20 billion
Correct Answer
B
Correct Option:
The trade deficit decreases by ₦10 billion

About This Question

This is Post Utme Unilag 2023 Economics Question 39. It is one of the objective questions from the 2023 Post Utme Unilag Economics examination.

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