Devaluation may aggravate inflation

Name: Devaluation may aggravate inflation
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Devaluation of a currency can lead to an increase in the prices of imported goods, which in turn can contribute to inflation. This is because a weaker currency makes imports more expensive, and if the demand for those imports does not decrease, the cost of those goods will be passed on to consumers, causing higher prices overall.

Devaluation May Aggravate Inflation