Show how devaluation affects an economy, Physics

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Q. Using a figure, show how devaluation affects an economy.

Answer: While a currency is devalued from E0 to E1 the stability shifts from point 1 to 2. Both money supply and output increase.

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Q. Using a figure, show how devaluation affects an economy. Answer: While a currency is devalued from E 0 to E 1  the stability shifts from point 1 to 2. Both money supply and

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