The inflation rate in Yinland was 14% last year. The government of Yinland just devalued its currency
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The inflation rate in Yinland was 14% last year. The government of Yinland just devalued its currency (the yin) by 40 % against the dollar. Even though Yinland produces similar types of products as the U.S., it has much trade with the U.S. and very little trade with other countries. It presently has trade restrictions imposed on all non-U.S. countries. Will the devaluation of the yin increase or reduce inflation in Yinland? Briefly explain.
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