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As noted earlier, a change in the exchange rate can, in the short run, affect the demand for and supply of commodities, and the competitiveness of US agriculture. When the US dollar strengthens or gains in value, it causes importers to pay more for the US dollar to buy US commodities.
The study was focused on finding out whether the Keynesian theory of balance of payments which points out that devaluation of exchange rate and price level will affect the Balance of trade which in the case of Keynesian theory is the most important account in the balance of payments is better option when applying fiscal and monetary policies to counter balance of payments imbalance in an open economy like, Iran.