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Which of the Following Statements Best Describes the Implications of a Currency

Question 15

Multiple Choice

Which of the following statements best describes the implications of a currency devaluation?


A) Other countries would find the country's goods, services, and financial instruments less expensive in domestic currency terms.
B) Other countries would find the country's goods, services, and financial instruments more expensive in domestic currency terms.
C) The country devaluing would be expected to reduce its net exports, which is likely to have a negative impact on domestic employment.
D) Both b and c are correct.

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