📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Devaluation of currency leads

      to
      A expansion of export trade Correct Answer Incorrect Answer
      B contraction of import trade Correct Answer Incorrect Answer
      C expansion of import substituting Correct Answer Incorrect Answer
      D all of the above Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Devaluation leads to a country’s exports to become less expensive as the currency is deliberately adjusted down to other currencies, making imports more expensive, making domestic consumers less likely to purchase them thus the domestic companies are encouraged to substitute imports.

      Practice Next
      More ESI Questions
      ask-question