Question
Currency devaluation done by the government leads to which of the following?
Answer: Option A
Answer: (a)
Devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to another currency, group of currencies. Since it is relative to other currencies so the internal price remains unchanged.
It causes a country’s exports to become less expensive and imports more expensive.
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Answer: (a)
Devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to another currency, group of currencies. Since it is relative to other currencies so the internal price remains unchanged.
It causes a country’s exports to become less expensive and imports more expensive.
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