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    Question

    What is the primary aim of currency devaluation? 

    A To encourage imports Correct Answer Incorrect Answer
    B To encourage exports Correct Answer Incorrect Answer
    C To encourage both imports and exports Correct Answer Incorrect Answer
    D To discourage both imports and exports Correct Answer Incorrect Answer

    Solution

    Devaluation lowers the value of a country's currency relative to others, making its exports cheaper and more competitive in international markets, while making imports more expensive.

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