Tourism is regarded as a useful means of raising net export earnings. An economy regards luxury tourism, such as wildlife safaris and cultural tours, as having demand that is very price-inelastic. If this is correct, which change is most likely to raise the export revenue this economy earns from luxury tourism?
- Aa depreciation of the economy’s currency
- Ba reduction in the taxes levied on hotels
- Can appreciation of the economy’s currency
- Dcheap government loans to increase the construction of hotels