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Q. |
Devaluation makes import - |
A. | Competitive |
B. | Inelastic |
C. | Cheaper |
D. | Dearer |
Answer» D. Dearer | |
Explanation: Devaluation makes import expensive and discourages it, while the export of a country that devalues becomes cheaper and thereby induces trade partners to import more goods from her. Nations that produce industrial goods on a large scale stand to benefit from devaluation. |
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