MCQOPTIONS
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| 1. |
Q: Devaluation of currency can correct a Balance of Payments deficit because___ |
| A. | It lowers price of exports in foreign currency and rises price of imports in home currency |
| B. | It raises price of exports in foreign currency and lowers price of imports in home currency |
| C. | It raises price of exports and imports in foreign currency |
| D. | It lowers price of exports and imports in home currency |
| Answer» B. It raises price of exports in foreign currency and lowers price of imports in home currency | |