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If a country's import bill is high, she can encourage exports by  

Economics
WAEC 2025

If a country's import bill is high, she can encourage exports by

 

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

When a country's currency depreciates, its goods and services become cheaper for foreign buyers, which can increase demand for
its exports.

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