Answer: import prices in domestic currency terms.

## Explanation When a country's currency depreciates: - **Export prices in foreign currency terms** (Option A) would typically **decrease**, making exports cheaper for foreign buyers - **Export prices in domestic currency terms** (Option B) would remain relatively unchanged or could increase slightly due to higher demand - **Import prices in domestic currency terms** (Option C) would **increase** significantly because it takes more domestic currency to buy the same amount of foreign goods For a country with a current account deficit, currency depreciation makes imports more expensive in domestic currency terms, which can help reduce the deficit by discouraging imports and making exports more competitive abroad. **Correct Answer: C** - Import prices in domestic currency terms will increase.

Author: LeetQuiz Editorial Team