1. When a nation experiences an ___ in the real value of its currency, the change makes __ and import competing goods more competitive.

a. decrease, imports

b. increase, exports

c. increase, imports

d. decrease, exports

2. In a risk shifting strategy, firms typically attempt invoicing in __ in appreciating currencies and ___ in depreciating currencies.

a. domestic loan payments, foreign loan payments

b. exports, imports

c. foreign loan payments, domestic loan payments.

d. imports, exports