When a Currency Is Devalued the Immediate Impact May Be

question 35

True/False

When a currency is devalued the immediate impact may be an increase in a country's trade deficit. However, this situation tend to correct itself in 2 to 5 weeks..

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Definitions:

GDP Deflator

The GDP deflator is an economic metric that converts output measured at current prices into constant-dollar GDP.

Nominal GDP

Gross Domestic Product measured at current market prices without adjustment for inflation.

Inflation

The rate of elevation in the uniform prices of goods and services, undermining the capability to buy more.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, detaching price changes from real output changes.