Currency devaluation (the decline of a foreign currency's value in relation to the U.S. dollar) is likely to increase the standard of living and reduce the inflation rate in the foreign country.

Question

Quizplus · Accepted Answer

Currency devaluation makes imports more expensive and can lead to higher inflation rates in the devaluing country. It may temporarily boost export competitiveness but does not necessarily increase the standard of living, especially if the economy heavily relies on imported goods and services.

Currency Devaluation (The Decline of a Foreign Currency's Value in Relation