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Which statement regarding currency depreciation or devaluation is correct? Hint: The balance of trade is the difference between a country's exports and imports of goods
Which statement regarding currency depreciation or devaluation is correct? Hint: The balance of trade is the difference between a country's exports and imports of goods and services. It can improve the balance of trade immediately if imports and exports are not responsive. It eventually deteriorates the balance of trade. It eventually improves the balance of trade. Devaluation of a currency has no overall impact on exports and imports. Currency depreciation tends to decrease both exports and imports
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