Asked by Olufunke Popoola on Sep 24, 2024
Verified
Currency devaluation _______import consumers because______
A) Helps;imports are more expensive
B) Hurts;imports are more expensive
C) Helps;imports are less expensive
D) Hurts;imports are less expensive
Currency Devaluation
The reduction of a currency's value in relation to foreign currencies, deliberately enacted by a country's government or monetary authority.
Import Consumers
Individuals or entities that bring goods or services into a country from abroad for domestic consumption.
More Expensive
Describing the condition of having a higher price compared to other options or the past pricing of the same item.
- Learn about the effects of currency devaluation on the financial obligations of consumers and suppliers, and its impact on the pricing of exports and imports.
Verified Answer
PL
Princess Lovely Mendiola3 days ago
Final Answer :
B
Explanation :
Currency devaluation hurts import consumers because imports become more expensive. When a country devalues its currency, the value of that currency decreases in relation to other currencies. This makes the prices of goods and services imported from other countries more expensive for consumers in the devaluing country, as they have to exchange more of their local currency to purchase the same amount of foreign currency needed to buy the imported goods.
Learning Objectives
- Learn about the effects of currency devaluation on the financial obligations of consumers and suppliers, and its impact on the pricing of exports and imports.