Assertion (A): Devaluation will lead to improvement in balance of trade. Reason (R) : Devaluation will lead to increase in price of exports.

Asked in APPSC Group II Mains paper 2 2025 · UPPCS Prelims 2011 · UPPSC Upper Mains 2007 · Topic: Balance of Payments (BoP) (Measures to Correct BoP Disequilibrium (Monetary, Fiscal, Exchange Rate, Trade Policies))

1. Both (A) and (R) are true and (R) is the correct explanation of (A)
2. Both (A) and (R) are true and (R) is not the correct explanation of (A)
3. (A) is true and (R) is false
4. (A) is false and (R) is true

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