Currency devaluation reduces the value of a country’s currency relative to other currencies. When a country’s currency becomes cheaper, its exports generally become less expensive to foreign buyers. This can make domestic goods more competitive in international markets and may increase export demand. Choice D is correct. Choice A is incorrect because devaluation can increase inflation by making imported goods more expensive for domestic consumers and businesses. Choice B is not necessarily true; devaluation may support GDP if export demand rises, although the broader effect depends on economic conditions. Choice C is incorrect because imports usually become more expensive after devaluation, which tends to reduce import demand rather than increase it. The SIE outline includes international economic factors such as balance of payments, gross domestic product, gross national product, and exchange rates. It also includes economic effects on markets and business activity. The technical principle is that a weaker currency improves the price competitiveness of exports but raises the local-currency cost of imports. Reference: Section 1.3.3 International Economic Factors; exchange rates and balance of payments.