Which of the following describes the primary impact of devaluation of a nation's currency?
A)It increases exports.
B)It lowers taxes.
C)It increases the spending power of citizens within that country.
D)It lowers interest rates.
E)All of the above are true.

Question

Quizplus · Accepted Answer

Devaluation of a nation's currency makes the exports of that country relatively cheaper in foreign markets, thereby increasing demand for those goods and increasing exports. It doesn't necessarily lower taxes, increase spending power or lower interest rates.

Which of the Following Describes the Primary Impact of Devaluation