Economics 9708 · AS & A Level · 6.4

6.4 — practice question

A country has a floating exchange rate that decreases, and its export revenue drops. What might account for this?

  • ADemand for its exports is inelastic.
  • BSupply of its exports is elastic.
  • CThe exchange rate is in disequilibrium.
  • DThe price of exports, in terms of foreign currency, rises.

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