Question 42
International TradeWhich of the following measures can be adopted to stabilize the external value of the local currency?
- A.Reduce the volume of exports
- B.Increase the demand for imports
- C.Increase domestic money supply
- D.Reduce the demand for imports
Show the answer and explanation
Answer: D (Reduce the demand for imports)
Explanation
Fewer imports reduce demand for foreign currency, supporting the local currency.