exports contracts are denominated in foreing currency imports contracts are denominated in foreing currency what will happen to the domestic trade balance following a devaluation of domestic currency? explain.

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A: Economy- It means managing available resources carefully.

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A: Exchange rate: - the exchange rate is the rate at which the currency of one country can be exchanged…

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A: Foreign Exchange Market: The foreign exchange market can be defined as an  institution which…

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A: Devaluation alludes to the deliberate activity taken by the public authority to degrade or diminish…

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A: A foreign exchange market is a market where currencies are bought and sold.

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A: Currency traders expect the value of the U.S. dollars to fall by yearend. What effect will this have…

Q: The US economy is growing faster than that of Japan. The faster growth rate in the US should cause…

A: Answer to the question is as follows :