Lower tariffs and quotas cause a country's currency to in the run, everything else held constant. Question 25 options: A) appreciate; short B) depreciate; short C) depreciate; long D) appreciate; long

Option C Depreciate; long

Explanation:

The reason is that the imports of the items starts increasing and as a result the supply of the currency starts increasing which means the demand of the foreign currency increases and as a result the domestic currency weakens in the longer term.

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