In 1983 Argonia’s currency, the argon, underwent areduction in value relative to the world’s strongest currencies. This reductionresulted in a significant increase in Argonia’s exports over 1982 levels. In1987 a similar reduction in the value of the argon led to another increase inArgonia’s exports. Faced with the need to increase exports yet again, Argonia’sfinance minister has proposed another reduction in the value of the argon. Which of the following, if true, most strongly supportsthe prediction that the finance minister’s plan will not result in asignificant increase in Argonia’s exports next year? A. The value of the argon rose sharply lastyear against the world’s strongest currencies. B. In 1988 the argon lost a small amount of itsvalue, and Aronian exports rose slightly in 1989. C. The value of Argonia’s exports was lowerlast year than it was the year before. D. All of Argonia’s export products are made byfactories that were operating at full capacity last year, and new factorieswould take years to build. E. Reductions in the value of the argon havealmost always led to significant reductions in the amount of goods and servicesthat Argonians purchase from abroad.
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