If Country B were to devalue its money, which is backed by gold, the prices of foreign goods for buyers in Country B would:

Question

Quizplus · Accepted Answer

Devaluing its currency makes Country B's goods cheaper for foreign buyers, increasing their affordability and demand. Conversely, foreign goods become more expensive for buyers in Country B, as more of their devalued currency is needed to purchase the same amount of foreign goods.

If Country B Were to Devalue Its Money, Which Is