The effects of inflation on the price competitiveness of a country's products may be offset by:

CA Foundation · Business Economics · RTP · May 2025
The effects of inflation on the price competitiveness of a country's products may be offset by:
(A) A. An appreciation of the currency
(B) B. A revaluation of the currency
(C) C. A depreciation of the currency
(D) D. None of the above

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. A depreciation of the currency

Topics: International Trade

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