Q. What is the effect of a currency devaluation under fixed exchange rates in the short run? (Solved)
1. A decline in output.
2. A decline in foreign reserves.
3. An increase in exports.
4. An increase in imports.
- c. An increase in exports.
1. A decline in output.
2. A decline in foreign reserves.
3. An increase in exports.
4. An increase in imports.