As a policy instrument,currency devaluation may be controversial since it:
A) Imposes hardships on the exporters of foreign countries
B) Imposes hardships on exporters of the devaluing country
C) Is generally followed by unemployment in the devaluing country
D) Is generally followed by price deflation in the devaluing country

Question

Quizplus · Accepted Answer

Currency devaluation makes the devaluing country's exports cheaper and more competitive, which can impose hardships on exporters from foreign countries as their goods become relatively more expensive.

As a Policy Instrument,currency Devaluation May Be Controversial Since It