Answer to Question #135084 in Macroeconomics for December

Question

Assume the local currency weakens against the major currencies. This will result in…
a) a decrease in the employment level.
b) an increase in the net export.
c) a fall in the purchasing power of local currency.
d) an increase in the purchasing power of local currency.
[1] a and b
[2] b and c
[3] c
[4] a and d
[5] a, b, c and d

Answer 1

(3) C. A fall in the purchasing power of local currency