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How can currency depreciation stimulate an increase in net exports? 1. By reducing export costs 2. By reducing import prices Select the answer using the code given below:

/ 2025, CDS I / By
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CDS I 2025 Question

 

How can currency depreciation stimulate an increase in net exports?

1. By reducing export costs

2. By reducing import prices

Select the answer using the code given below:

  • A. 1 only
  • B. 2 only
  • C. Both 1 and 2
  • D. Neither 1 and 2
Correct Answer: Option A

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