SEPTEMBER 2025Foundation
83. Country 'X' has seen an increase in its Real Effective Exchange Rate (REER). As a result, Country 'X's goods are becoming more expensive for foreign buyers, and imports from other countries are becoming cheaper. What is the likely impact on Country 'X's economy?
A
(A) Exports from Country 'X' will increase.
B
(B) Imports to Country 'X' will become more expensive.
C
(C) Exports from Country 'X' will become less competitive.
D
(D) Imports to Country 'X' will decrease.