If the exchange rate falls (the value of domestic currency has depreciated) then the domestic health care corporations are now more affordable to the foreigners, and this the demand of the service will increase. This is because, in the foreign currency terms, the price of the service would now have fallen. But if the exchange rate rises (the value of the domestic currency appreciates) then the domestic heath care corporations will no longer be as affordable as before as the price of the service

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36 A Decrease imports and raises net exports 37 ... View the full answer