Question: 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

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 if investment falls, saving rises, or both. Suppose
investment is negatively related to the real interest rate. How might devaluation
affect national saving and domestic investment?

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