Question

Question 7 of 10

How does the exchange rate for a country's currency affect its terms of
trade?
A. Favorable terms of trade are required for a country to trade with
wealthy partners.
B. A higher exchange rate for the country's currency can lead to
deteriorating terms of trade.
O C. A higher exchange rate for the country's currency can lead to more
favorable terms of trade.
D. Deteriorating terms of trade prevent a country from using its
currency for trade.

Answer 1

Answer: C. A higher exchange rate for the country's currency can lead to more favorable terms of trade.

Step-by-step explanation:

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