A country experiences an increase in the value of its currency relative to other currencies. This would most likely result in:

A decrease in exports

A decrease in imports

An increase in exports

1 answer

An increase in the value of a country's currency relative to other currencies would most likely result in a decrease in exports.

When a country's currency appreciates, its goods and services become more expensive for foreign buyers, which can lead to a decline in export demand. On the other hand, imports may become cheaper for domestic consumers, potentially leading to an increase in imports. Therefore, the correct answer is a decrease in exports.