Question

2
(a) An appreciation in a countryS exchange rate is most likely to lead to which one of the
following?
A An increase in exports and a decrease in imports
B A decrease in exports and a decrease in imports
C An increase in exports and an increase in imports
D A decrease in exports and an increase in imports
(b) Which one of the following is likely to result in poverty?
A High literacy rates
B Low GDP per capita
C Low rates Of tax
D High employment rates
(c) State one effect on the balance of payments of improved quality of foreign goods.
(d) What is meant by the term free trade?

Answer 1

B explanation- imports will increase because the concerned country will have to pay less to get more in terms of trade.