Question

The currency of country X is pegged to the currency of country Y. Assume that county Y’s currency depreciates against the currency of country Z. It is likely that country X will export_______to country Z and import_______from country Z. a. more; more.b. less; less.c. more; less.d. less; more.

Answer 1

Option "C" is the correct answer to the following question.

Step-by-step explanation:

It is given that the currency of country X is higher according to the measurement of currency of country Y.

We know that Country Y's currency is depreciating against Country Z's currency. Hence we can say that the value of the currency of country X is more than the currency of country z.

So, country X Increase it's export and decreases import to earn more profit.