Which of the following would be an effect of a revaluation of a country's currency?

CA Foundation · Business Economics · MTP · January 2025
Which of the following would be an effect of a revaluation of a country's currency?
(A) A. Increased demand for the country's exports
(B) B. A decrease in the cost of imports for consumers
(C) C. Increased competitiveness of the country's exports in the global market
(D) D. A higher cost of living for consumers due to decreased purchasing power

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. A decrease in the cost of imports for consumers

Topics: International Trade

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