The effect of inflation on the price competitiveness... - Solved MCQs & Answer

4258EconomicsMedium

The effect of inflation on the price competitiveness of a country’s products may be offset by?

AA depreciation of the currency

BLower inflation abroad

CA revaluation of the currency

DAn appreciation of the currency

Correct answer

B. Lower inflation abroad

Explanation

The correct answer is Lower inflation abroad.

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