WAEC - Economics (2024 - No. 45)

Devaluation of currency will help to correct balance of payments deficit if a country's 
exports have perfectly inelastic demand.
imports have inelastic demand.
exports have elastic demand.
productivity is low.

Explanation

C: Devaluation of currency will only help to correct balance of payments deficit if the elasticity of demand for the 'product of the country is elastic. Devaluation will make the price cheaper and that will make more people to buy the country's goods

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