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