Economics 9708 · AS & A Level · 6.4

6.4 — practice question

What immediate impact will a devaluation of an economy’s foreign exchange rate have?

  • AThe price of imported goods in the domestic currency will fall.
  • BThe price of imported goods in the domestic currency will rise.
  • CThe price of imported goods in the foreign currency will fall.
  • DThe price of imported goods in the foreign currency will rise.

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