Question

Explain what can be the likely impact of depreciation of home currency on the imports to the country

Answer 1

Answer:

The devaluation or depreciation of currency tends to raise the price level in the country and thus increase the rate of inflation. ... As a result of depreciation/ devaluation, prices of imported goods rise. In case of imports of consumer goods rise in their prices directly leads to the increase in the rate of inflation.

ѕhrutí plѕ mαrk ít αѕ вrαínlíєѕt.