1. What effects might the devaluation of a nation's currency have on its business firms, its consumers, and the debts it owes to other nations?
(120 words or more)
Devaluation makes other currency expensive with respect to the domestic currency. This makes the imports expensive hence, the demand for domestic goods increases.
Therefore, the domestic firms get increased AD for their products.
Consumers get lesser choice and have to limit there wants to domestic goods only because devaluation makes import expensive.
Repaying Debt becomes much more easier because as the value of of currency decreases, a country gets to pay a lesser valued repayment then what is took as a loan when the value of currency was more.
1. What effects might the devaluation of a nation's currency have on its business firms, its...
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please answer those two questions
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