How does an increase in a countrys exchange rate affect itsbalance of trade? A.

How does an increase in a countrys exchange rate affect itsbalance of trade? A. An increase in the exchange rate raisesimports reduces exports and reduces the balance of trade. B. Anincrease in the exchange rate reduces imports raises exports andincreases the balance of trade. C. An increase in the exchange ratereduces imports raises exports and reduces the balance of trade.D. An increase in the exchange rate raises imports reducesexports and increases the balance of trade.