What is the potential drawback of currency deva... - SS3 Economics Methods of Correcting Deficit BOP Question
What is the potential drawback of currency devaluation as a method of correcting a deficit balance of payments?
A
It can lead to inflation and higher costs for imported goods
B
It can lead to a decrease in foreign reserves
C
It can increase the country's foreign debt
D
It can lead to a decrease in domestic production
correct option: a
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