问题如下：
Which of the following statements about devaluation of a country's currency is correct?
选项：
A.devaluation of currency narrows trade deficit when imports are less than exports.
B.devaluation of currency narrows trade deficit if the price elasticity of import demand is larger than one.
C.devaluation of currency narrows trade deficit when investment increases in comparison to private and government savings.
解释：
B is correct.
The elasticities approach suggests that the export and import with more elasticity is most likely to narrow the trade deficit in terms of currency devaluation.
考点：elasticities approach
解析：弹性理论认为，具有更大弹性的进出口贸易最有可能在货币贬值的情况下缩小贸易逆差。B选项正确，AC都是打酱油的选项。
narrow不是限制么？B不是弹性大可以促进么？
