Devaluation lowers the external value of the domestic currency. Foreigners need less of their currency to buy domestic goods, so exports become cheaper abroad. Domestic residents need more domestic currency to buy foreign goods, so imports become expensive.
Devaluation of domestic currency will make :
CUET UG 2022 — Economics Macro
2022mcqeasy
Devaluation of domestic currency will make :
Official previous-year question
Verified 13 Jul 2026.
Options
- A
Imports and Exports both become expensive
- B
Imports become expensive and Exports become cheaper
- C
Imports become cheaper and Exports become expensive
- D
Imports and Exports both become cheaper
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