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Home currency devaluation is thought to be harmful to a nation if it leads to deterioration in the balance of payments. Using the diagrams below,

Home currency devaluation is thought to be harmful to a nation if it leads to deterioration in the balance of payments. Using the diagrams below, evaluate this claim by showing a specific outcome of dollar devaluation on the merchandise portion of the U.S. balance of payments for goods A and B. (Let Britain (B) be the other country. The use of numbers is not required.)

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