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WAEC Economics 2021 Objective — Question 44

Question 44 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.

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44. If a country's import bill is high, to encourage exports by

  • A. allowing her currency to depreciate.Correct
  • B. allowing her currency to appreciate.
  • C. liberalizing importation.
  • D. increasing taxes on all locally produced goods.

Explanation

A depreciated (weaker) currency makes the country's exports cheaper for foreign buyers, encouraging exports.

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