The devaluation of a country's currency
A)makes foreign products more expensive for consumers in that country.
B)increases foreign demand for that country's exports.
C)can lead to deflation in that country.
D)makes foreign products more expensive for consumers in that country AND increases foreign demand for that country's exports.

Question

Quizplus · Accepted Answer

Devaluation of a country's currency makes its products cheaper for foreign buyers, increasing demand for its exports, and makes foreign products more expensive for domestic consumers.

The Devaluation of a Country's Currency