Teaching JKPSC Lecturership Mock Test Series 2024-25 General Knowledge Economy External Sector and Currency Exchange rate
Which of the following is/are the possible impacts of the devaluation of a currency in a country?
1. It may help in combating inflation.
2. It may lead to an increase in aggregate demand for domestically produced goods.
3. It may lead to an improvement in the current account balance.
Select the correct answer using the code given below.
1
1 only
2
1 and 2
3
2 and 3
4
1, 2 and 3