Currency devaluations have the potential to reduce unemployment, while currency revaluations have the potential to reduce inflation.

Question

Quizplus · Accepted Answer

Currency devaluations make exports cheaper and more attractive to foreign buyers, increasing demand for domestically-made goods and potentially leading to increased production and employment. Currency revaluations make imports cheaper and reduce the cost of raw materials, potentially reducing inflationary pressures.

Currency Devaluations Have the Potential to Reduce Unemployment, While Currency