# Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ? Correct Answer: A. home demand for imports is inelastic and foreign export demand is inelastic. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ?

Direct Answer & Quick Reference

The correct option is **A. home demand for imports is inelastic and foreign export demand is inelastic**.

A. home demand for imports is inelastic and foreign export demand is inelastic **(Correct Answer)**

B. home demand for imports is elastic and foreign export demand is inelastic

C. home demand for imports is inelastic and foreign export demand is elastic

D. home demand for imports is elastic and foreign export demand is elastic

✨ Explain with AI

Verified Key: A. home demand for imports is inelastic and foreign export demand is inelastic
Solved by 2,497+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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