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. Devaluation of currency leads to
(1) Fall in domestic prices
(2) No effect in domestic prices
(3) Increase in domestic prices
(4) Any of the above
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Answer / babu.t
Devaluation leads to increase the price of the domestic goods.
We have to give higher price for the domestic goods because value of the money diminished in terms of foreign currency. But at the same time price on domestic goods by foriegners
falls.It becomes more attractive to foreigners
| Is This Answer Correct ? | 31 Yes | 7 No |
Answer / kamesh kumar
no effect in domestic prices because devaluation means fall
in the value of money in terms of other countries but the
domestic prices would be the same.
| Is This Answer Correct ? | 24 Yes | 17 No |
Answer / reddy
Devaluation of currency mainly to increase the exports of a country. When export's are increased availability of the products domestically decreases.thus demand for the products manufactured in the country and imported costs increases so domestic price increases
| Is This Answer Correct ? | 3 Yes | 0 No |
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