Explanation:

1. It leads to an increase in imports and decrease in exports: This statement is incorrect. Devaluation or depreciation of currency generally makes imported goods more expensive and exported goods cheaper for foreign buyers. Therefore, it tends to decrease imports and increase exports.
2. It leads to an increase in exports and decrease in imports: This statement is correct for the reasons mentioned above. A weaker domestic currency makes exports more competitive and imports more expensive.
3. It leads to an increase in domestic inflation: This statement is correct. When the domestic currency is devalued or depreciated, imports become more expensive, which can contribute to inflationary pressures within the country.
4. It leads to a decrease in domestic inflation: This statement is incorrect. Devaluation or depreciation is generally inflationary, not deflationary.