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Foreign Exchange Market Intervention Like Devaluation or Revaluation Occurs

Question 92

Multiple Choice

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.

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