Currency devaluation and revaluation are considered to be expenditure-changing policies since they alter a country's aggregate demand for goods and services.

Question

Quizplus · Accepted Answer

Currency devaluation and revaluation are exchange rate policies affecting the price of a country's currency relative to others, influencing the trade balance rather than directly altering aggregate demand through government spending or taxation.

Currency Devaluation and Revaluation Are Considered to Be Expenditure-Changing Policies