What is devaluation of currency class 12?
Hello aspirant,
Devaluation is the decrease in the value of a currency in terms of gold, silver, or other currencies. To close ongoing balance-of-payments deficits, devaluation is used. For instance, a currency devaluation will result in lower pricing for exports from the home nation that are paid for using the currency of the importer. Devaluation raises the cost of imports that are bought in the home country while simultaneously making exported goods more affordable for other nations. The country’s export revenue will increase and its import spending will decrease if demand for both exports and imports is extremely elastic (that is, the amount purchased is strongly responsive to changes in price).
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