When a country devalues its currency
Question # 00279616
Posted By:
Updated on: 05/09/2016 03:04 PM Due on: 06/08/2016

When a country devalues its currency, we expect that?
a. Income will rise because the devaluation stimulates aggregate demand.
b. Income will rise because the devaluation stimulates aggregate supply.
c. Income will fall because the devaluation reduces aggregate demand.
d. Income will fall because the devaluation reduces aggregate supply.
e. There will be no change in income because income is earned from production, not from trade

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Rating:
5/
Solution: When a country devalues its currency