Which statement regarding exchange rate intervention is FALSE?
A) A devaluation can be used to increase exports and reduce imports.
B) A devaluation can be used to eliminate a recessionary gap.
C) A revaluation can be used to eliminate a recessionary gap.
D) Devaluations and revaluations can be used to eliminate shortages or surpluses in the foreign exchange market.
Correct Answer:
Verified
Q234: Devaluation of a currency occurs under _
Q235: In terms of foreign currency, a revaluation
Q236: The primary economic disadvantage of adopting the
Q237: A revaluation _ exports and _ imports.
A)
Q238: An increase in the value of a
Q240: A reduction in the value of a
Q241: An increase in U.S. interest rates causes
Q242: After a revaluation, all other things equal,
Q243: Expansionary monetary policy in the United States
Q244: A devaluation can help reduce a(n) _
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