Question

Which of the following is most likely to improve the value of a nation's currency?
A.
Increasing inflation within the nation
B.
Increasing imports into the nation
C.
Increasing exports from the nation
D.
Increasing the nation's government debt


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

Increasing exports raises foreign demand for the nation's currency (foreign buyers need the currency to pay for the goods), which tends to appreciate the currency.