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  1. Devaluation of currency leads to
    1. expansion of export trade
    2. contraction of import trade
    3. expansion of import substituting
    4. all of the above
Correct Option: D

Devaluation of currency leads to the all of the above given aspects Devaluation leads to a country's exports to become less expansive as the currency is deliberately adjusted down to other currencies, making import more expansive, making domestic consumers less likely to purchase them thus the domestic companies are encouraged to substitute imports.



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