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Commerce · Q205

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 205

Q205

If the price elasticity of demand for exports is zero, then exports in local currency will

A.
Be the same after devaluation
Answer
B.
Fall after devaluation
C.
Substantially increase after devaluation
D.
Partially increase after devaluation

Answer: Option A

Solution

Answer: Option A
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