Consequences of changes in the exchange rate

What is the impact of currency depreciation on a resource-dependent country that imports oil?

• Decrease in demand for imports

• Increase in demand for exports

• Increase in cost-push inflation

• Decrease in cost-push inflation

What effect does a currency depreciation have on the demand for exports and imports?

• Decrease in demand for exports, increase in demand for imports

• Increase in demand for exports and imports

• Increase in demand for exports, decrease in demand for imports

• Decrease in demand for exports and imports

How does a depreciating currency impact economic growth in a country heavily reliant on energy imports?

• Leads to demand-pull inflation and boosts economic growth

• Boosts economic growth and reduces cost-push inflation

• Leads to cost-push inflation and impairs economic growth

• Has no impact on economic growth

What is the potential impact of a currency depreciation on UK exports after the Brexit referendum?

• No impact on UK exports

• Increase in demand for UK exports

• Decrease in demand for UK exports

• Increase in demand for imports

How does a currency appreciation affect unemployment in an exporting country?

• No impact on unemployment

• Increase in unemployment due to increased demand for imports

• Increase in unemployment due to decreased demand for exports

• Decrease in unemployment due to increased demand for exports

What is the impact of a currency depreciation on the current account balance of a net exporter?

• Has no impact on the current account balance

• Improves the current account balance in the long run

• Worsens the current account balance in the long run

• Improves the current account balance in the short run

How does a strong US dollar impact the living standards of its citizens?

• Improves living standards due to increased job opportunities

• Lowers living standards due to expensive imports

• Has no impact on living standards

• Lowers living standards due to expensive international travel

What is the potential impact of a strong Haitian gourde on the tourism industry in Haiti?

• Has no impact on the tourism industry

• Lowers tourism industry due to expensive imports

• Lowers tourism industry due to expensive international travel

• Boosts tourism industry due to cheaper imports

How does a weaker Haitian gourde impact remittances in Haiti?

• Increases the cost of remittances

• Has no impact on the value of remittances

• Increases the value of remittances

• Decreases the value of remittances

What is the impact of a currency depreciation on the demand for exports and imports?

• Decrease in demand for exports and imports

• Increase in demand for exports and imports

• Decrease in demand for exports, increase in demand for imports

• Increase in demand for exports, decrease in demand for imports