Foreign exchange market intervention like devaluation or revaluation occurs
A) when a central bank changes interest rates.
B) whenever there is countercyclical fiscal policy.
C) only if a country has adopted a flexible exchange rate policy.
D) when a country's government buys or sells foreign currency to affect its exchange rate.
E) only when countries want to permanently alter exchange rates.
Correct Answer:
Verified
Q87: Flexible exchange rate policies have been adopted
Q88: To avoid changing your interest rate to
Q89: It is possible to have both a
Q90: If a central bank devaluates its currency,
Q91: The East Asian currency crisis of 1997
Q93: As a result of undervaluation,
A)domestic consumers can
Q94: Sustained undervaluation of a country's currency results
Q95: If a country fixes its currency to
Q96: The U.S. government may devalue the dollar
Q97: A government can apply a policy of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents