Economics (M.Phil./Ph.D.) 2019 Panjab University Entrance Exam With Answers

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16.

Devaluation of currency can correct a Balance of Payment deficit because

A: It raises price of exports and imports in foreign currency
B: It lowers price of exports in foreign currency and raises price of imports in home currency
C: It lowers price of exports and imports in home currency
D: It raises price of exports in foreign currency and lowers price of imports in home currency

The answer is: B

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