Question

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

Answer 1

Explanation:

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.