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How does depreciation (devaluation) affect the imports of a country? - Economics

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प्रश्न

How does depreciation (devaluation) affect the imports of a country?

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उत्तर

Depreciation (or devaluation) makes the domestic currency weaker compared to foreign currencies. As a result, imports become more expensive because more local currency is needed to buy the same amount of foreign goods. This usually leads to a decrease in imports.

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पाठ 15: Balance of Payments and Exchange Rate - TEST YOURSELF QUESTIONS [पृष्ठ २९६]

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फ्रँक Economics [English] Class 12 ISC
पाठ 15 Balance of Payments and Exchange Rate
TEST YOURSELF QUESTIONS | Q 38. a | पृष्ठ २९६
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