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Devaluation of currency leads to
Options:
A .  contraction of import trade
B .  all of the above
C .  expansion of import substituting
D .  expansion of export trade
Answer: Option B
Answer: (b)
Devaluation of currency leads to all of the above-given aspects.
Devaluation leads to a country’s exports become less expensive as the currency is deliberately adjusted down to other currencies, making imports more expensive, making domestic consumers less likely to purchase them thus the domestic companies are encouraged to substitute imports.

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