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WAEC Economics 2021 Question 46

Question 46

International Trade

A country may be able to earn more from exports if she

  1. A.increase her export duty.
  2. B.devalues her currency.
  3. C.increases her import duty.
  4. D.allows her currency to appreciate.
Show the answer and explanation

Answer: B (devalues her currency.)

Explanation

Devaluation makes exports cheaper abroad so more are sold (if demand is elastic).