Sustained undervaluation of a country's currency results in

Question

Quizplus · Accepted Answer

Sustained undervaluation of a country's currency means that the value of the currency in the international market is lower than its actual value. This makes domestic goods and services cheaper for foreign buyers, boosting exports. As a result, domestic producers raise their prices to take advantage of increased demand, leading to a rise in the prices of domestic goods and services.

Sustained Undervaluation of a Country's Currency Results in