The devaluation of a currency results in a(n):
a. initial increase in trade balance, but an eventual decline in trade balance.
b. permanent decline in trade balance.
c. permanent increase in trade balance.
d. initial decrease in trade balance, but an eventual increase in trade balance.
Ans: d. initial decrease in trade balance, but an eventual increase in trade balance.
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A) household; goods B) household; factor C) business; household D) expenditure; income E) goods; factor
Most financial assets other than money function as
a. a medium of exchange, a unit of account, and a store of value. b. a medium of exchange and a store of value, but not a unit of account. c. a store of value and a unit of account, but not a medium of exchange. d. a store of value, but not a unit of account nor a medium of exchange