- 6 Marks
BMF – May 2021 – L1 – SB – Q1b – The Business Environment
Discuss the implications of rectifying international payment disequilibrium through currency depreciation.
Question
Theoretically, disequilibrium in international payments could be rectified by a fall in the exchange value of the currency of countries that have a deficit in their balance of payments in goods and services. What are the implications of taking this measure?
Find Related Questions by Tags, levels, etc.
- Tags: Currency Exchange, Economic Policy, International trade
- Level: Level 1
- Topic: The Business Environment
- Series: MAY 2021
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