A. Increase in export duties
B. Increase in excise duties
C. Depreciation of currency
D. Total ban on imports

Correct Answer:

Option C – Depreciation of currency


The economic effect is thus, depreciation of currency tends to increase a country’s balance of trade ( exports minus imports) by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by becoming more expensive.

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