Currency devaluation done by the government leads to which

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Currency devaluation done by the government leads to which of the following?

1. Fall in domestic prices
2. Increases in domestic prices
3. No impact on domestic prices
4. Irregular fluctuations in domestic prices.

Correct Option: C

Devaluation is a deliberate downward adjustment to the value of a country s currency, relative to another currency, group of currencies. Since it is relative to other currency, so internal price remains unchanged. It causes a country's exports to become less expensive and imports more expensive.