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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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