The likely implication of the devaluation of a country's currency is that
A. exports of such a country become cheaper B. importation of goods into such a country becomes cheaper C. the value of such a country's currency rises D. foreign goods are attracted into the country
Correct Answer: A
Explanation
The devaluation or depreciation of currency tends to raise the price level in the country and thus increase the rate of inflation. This causes the exports of goods to increase and reduces the supply and availability of goods in the domestic market which tends to raise the domestic price level.
