Which of the following is not associated with exchange rate depreciation?

CA Foundation · Business Economics · PYQS · May 2026
Which of the following is not associated with exchange rate depreciation?
(A) A. Leads to output expansion
(B) B. Encourages economic activity
(C) C. Lowers the relative price of imports
(D) D. Improves balance of trade

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Lowers the relative price of imports

Topics: International Trade

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