The effects of devaluation includes all except ____________
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Correct Answer: Option D
Explanation:
Devaluation reduces the value of a country's currency relative to foreign currencies. It generally makes exports cheaper to foreign buyers and imports more expensive to domestic consumers, which can encourage local production. Therefore, an increase in imports is not an expected effect of devaluation.
Devaluation reduces the value of a country's currency relative to foreign currencies. It generally makes exports cheaper to foreign buyers and imports more expensive to domestic consumers, which can encourage local production. Therefore, an increase in imports is not an expected effect of devaluation.