Devaluation results in
A) Increase in domestic price of imports and decrease in foreign price of exports
B) Increase in foreign price of exports and decrease in domestic price of imports
C) Decrease in domestic price of imports and increase in foreign price of exports
D) None of the above
Correct Answer:
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Q15: If export is less than import, there
Q16: In the equation B=Rf-Pf, Pf represents
A)Payments made
Q17: The difference between exports and imports of
Q18: Under direct control measures, the government aims
Q19: Given the foreign exchange rate and prices
Q21: Undervaluation of currency encourages
A)Imports
B)Exports
C)Investments
D)None of the above
Q22: The equation Rf-Pf <0 denotes
A)Surplus in balance
Q23: Imports in balance of payments account are
Q24: Which of the following account does not
Q25: Exchange rate depreciation reduces
A)The value of home
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