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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


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