Lowering a fixed exchange rate by a government is called a(n)__________ of that rate.
A) devaluation
B) revaluation
C) appreciation
D) depreciation

Question

Quizplus · Accepted Answer

When a government lowers a fixed exchange rate, it is known as devaluation. Devaluation is done to make the country's exports more competitive in the international market by making them cheaper. It also makes imports expensive, which helps to reduce the trade deficit.

Lowering a Fixed Exchange Rate by a Government Is Called