Devaluation of currency affects
(a) Fall in domestic values
(b) Increase in domestic values
(c) No effect on domestic prices
(d) None of the above
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Answer Posted / sakthi
b)Increase in domestic values
Due to devaluation the domestic good in foreign market is
made less expensive by which the exports are increased.
This makes the rise in values for the commodities in
domestic market. By which the imports are made to decrease.
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