A revaluation switches expenditures from foreign to domestic commodities and can be used to correct a deficit in the nation's balance-of-payments

Question

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A revaluation makes a nation's currency more expensive in terms of other currencies, which can actually make domestic commodities more expensive for foreigners and foreign commodities cheaper for domestic consumers, potentially worsening a balance-of-payments deficit by reducing exports and increasing imports.

A Revaluation Switches Expenditures from Foreign to Domestic Commodities and Can