After a devaluation, all other things equal, probably exports will increase and imports will decrease.

Question

Quizplus · Accepted Answer

After a devaluation, the country's currency becomes relatively cheaper compared to other currencies. This makes the country's exports cheaper and more attractive to foreign buyers, leading to an increase in exports. On the other hand, imports become relatively more expensive, discouraging local consumers from buying foreign goods, leading to a decrease in imports.

After a Devaluation, All Other Things Equal, Probably Exports Will