Empirical evidence regarding the effects of devaluation on the balance of trade indicates that
A. devaluation generally improves the BOT.
B. devaluation generally hurts the BOT.
C. no strong generalizations are possible.
D. devaluation has no effect on the BOT.
Answer:C
Empirical evidence regarding the effects of devaluation on the balance of trade indicates that
A. devaluation generally improves the BOT. B. devaluation generally hurts the BOT. C. no strong generalizations are possible. D. devaluation has no effect on the BOT.