How might devaluation affect domestic investment


Problem

Devaluation is often used by countries to improve their current accounts. Since the current account equals national saving less domestic investment, however, this improvement can occur only if investment falls, saving rises, or both. How might devaluation affect national saving and domestic investment?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How might devaluation affect domestic investment
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