2) What effect does the value of a nation's currency have on the price of that nation's imports and exports?
A)
B)
When a nation has a currency with a high value, the country's imports are
less expensive, and its exports are less expensive to foreign nations.
When a nation has a currency with a high value, the country's imports are
more expensive, and its exports are more expensive to foreign nations.
When a nation has a currency with a high value, the country's imports are
less expensive, whereas its exports are more expensive to foreign nations.
When a nation has a currency with a high value, the country's imports are
more expensive, whereas its exports are less expensive to foreign nations.
D)
3)
As nations learn to specialize in production, they will trade with other nations when what happens?
A)
They have absolute advantage in trade.