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The effectiveness of devaluation as a solution to a balance of payments problem depends on…

The effectiveness of devaluation as a solution to a balance of payments problem depends on the
  • A.
    value of visible and invisible goods
  • B.
    value of invisible items of both domestic and foreign trades
  • C.
    relative elasticities of demand and supply of imports and exports
  • D.
    foreign investments of businessmen
Correct Answer: Option C
Explanation