The effects of devaluation includes all except _______?

A. exports become cheaper
B. expansion of local industries
C. increase in standard of living
D. increase in import

Correct Answer:

Option D – increase in import

Explanation

Devaluation is the reduction of the value of a country’s currency in terms if the value of the currencies of other nations of the world.

There will be a decrease in inputs as citizens will be spending more in buying goods from other countries.