Post Utme Uniport 2019 Economics Question 18

Practice objective / multiple choice question 18 from the 2019 Post Utme Uniport Economics examination.

Post Utme Uniport 2019 Economics Objective / Multiple Choice
Question 18 POST_UTME_UNIPORT • 2019 • ECONOMICS • objective

A country is experiencing a trade deficit due to an increase in imports. If the country's exchange rate is allowed to float, what will be the effect on the country's trade deficit?

Answer Options

A. The trade deficit will increase.
Correct Answer B. The trade deficit will decrease.
C. The trade deficit will remain unchanged.
D. The effect on the trade deficit is ambiguous.
Correct Answer
B
Correct Option:
The trade deficit will decrease.

About This Question

This is Post Utme Uniport 2019 Economics Question 18. It is one of the objective questions from the 2019 Post Utme Uniport Economics examination.

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