Which situation would allow a country to increase the value of its imports
without increasing the amount of money it spent in trade?
A. The value of the country's currency increases relative to other
countries,
B. The value of the country's currency decreases relative to other
countries.
C. The country changes its trade policy to create a flexible exchange
rate.
D. The country changes its trade policy to create a fixed exchange
rate

Respuesta :

Answer:

A , I’m taking it right now so idk if this is right for sure

Explanation:

Imports and Export affect the GDP of a country. If the country increases its imports it is still beneficial if the value of the home currency grows.

How do imports and export influence the economy?

The import and export are concerned with the inflow and outflow of cash which directly affects the GDP, the exchange rate i.e. value of the home currency in the foreign trade exchange, the interest rate, and the inflation rate.

If the country increases its import(outflow of money) without increasing the amount of money to be spent so if the value of the home currency increases as compared to other countries it will be required to pay less amount i.e. the outflow of cash is there but at the reduced rate.

Therefore, option A aptly explains the above statement.

Learn more about the influence of imports and export on the economy here:

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