As the dollar is devaluatedA) inflationary pressures are reduced and our standard of living is reduced.B) inflationary pressures are increased and our standard of living is increased.C) inflationary pressures are reduced and our standard of living is increased.D) inflationary pressures are increased and our standard of living is reduced.

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Kendra Lythgoe · Accepted Answer

Final Answer : D, Explanation :  When the dollar is devalued, the cost of imports increases, leading to an increase in inflationary pressures. In addition, a weak currency can deter foreign investment and reduce purchasing power for domestic consumers, leading to a decrease in the standard of living. Therefore, the best choice is D, as inflationary pressures are increased and our standard of living is reduced.

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