Currency devaluation reduces the value of a country's currency relative to others, making its exports cheaper and more competitive internationally. This stimulates demand for the country's goods and services.
* D is correctbecause devaluation reduces export costs, encouraging foreign buyers.
* Ais incorrect because devaluation can increase inflation by raising the cost of imported goods.
* Bis incorrect because GDP often rises due to increased export demand.
* Cis incorrect because imports become more expensive after devaluation, reducing demand.