Question : Devaluation makes import:
Option 1: competitive
Option 2: inelastic
Option 3: cheaper
Option 4: dearer
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Correct Answer: dearer
Solution : The correct answer is dearer .
Devaluating one's currency makes exports cheaper by manufacturing goods for the same amount of money but selling at higher prices because exchange rates are not changed. Conversely, it can be related to imports which become dearer if currency is devalued.
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