Devaluation of a currency occurs under _____ exchange rates when the price of the domestic currency in terms of foreign currency _____.

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Devaluation of a currency refers to the deliberate downward adjustment of a country's currency value relative to another currency, group of currencies, or standard, and it typically occurs under a fixed exchange rate system. When a country devalues its currency, the price of the domestic currency in terms of foreign currency falls, making domestic goods cheaper for foreigners and foreign goods more expensive for domestic consumers.

Devaluation of a Currency Occurs Under _____ Exchange Rates When