Given below are two statements:
Statement I: Devaluation always correct a chronic balance of payments deficit.
Statement II: An expected devaluation leads to speculation. capital outflows from the domestic countries.
In light of the above statements, choose the correct answer from the options given below:
1
Both Statement I and Statement II are true
2
Both Statement I and Statement II are false
3
Statement I is true but Statement II is false
4
Statement I is false but Statement II is true