Question : Which of the following are the effects of appreciation of domestic currency?
 

Option 1: Increase in imports 
 

Option 2: Decrease in exports 
 

Option 3: Decrease in national income
 

Option 4: All of the above.
 

Question : The domestic country will have to spend more domestic currency to import foreign goods. Which effect of depreciation is highlighted here?
 

Option 1: Increase in exports
 

Option 2: Decrease in imports 
 

Option 3: Increase in the national income
 

Option 4: All of the above.
 

Question : The domestic country will have to spend less domestic currency to import foreign goods. Which effect of depreciation is highlighted here?
 

Option 1: Increase in imports
 

Option 2: Decrease in exports 
 

Option 3: Increase in the national income
 

Option 4: All of the above.
 

Question : What is the impact of a stronger domestic currency on a country's imports and exports?

Option 1: Increase in imports, decrease in exports
  

Option 2: Decrease in imports, increase in exports
   

Option 3: Increase in imports, increase in exports

Option 4: Decrease in imports, decrease in exports

Question : Net exports will decrease. 
Which effect of depreciation is highlighted here?
 

Option 1: Increase in imports 
 

Option 2: Decrease in exports 
 

Option 3: Increase in the national income
 

Option 4: All of the above.