A revaluation can help reduce _____ of domestic currency. I. shortages
II) surpluses

Question

Quizplus · Accepted Answer

A revaluation refers to an increase in the value of a domestic currency relative to foreign currencies. This means that imports will become cheaper and exports will become more expensive, which can lead to a decrease in shortages of domestic currency. However, a revaluation may not necessarily reduce surpluses of domestic currency.

A Revaluation Can Help Reduce _____ of Domestic Currency