The effects of devaluation includes all except

JAMB Commerce 2023 197 views
Source: JAMB · 2023

The effects of devaluation includes all except

  1. exports become cheaper
  2. expansion of local industries
  3. increase in standard of living ✓
  4. import are expensive
Explanation

Devaluation lowers the value of a country’s currency. Exports become cheaper for foreigners, imports become costlier, and local industries tend to grow.

Costlier imports push prices up, so standard of living does not usually increase. It often falls.

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