Devaluation leads to a permanent rise in competitiveness.

Name: Devaluation leads to a permanent rise in competitiveness.
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Question

Quizplus · Accepted Answer

Devaluation can temporarily improve a country's competitiveness by making its exports cheaper and imports more expensive. However, the effect may not be permanent as it can lead to inflation, which can offset the initial competitive advantage by increasing domestic prices.

Devaluation Leads to a Permanent Rise in Competitiveness