Under a flexible exchange rate system, a decrease in the value of a domestic currency in terms of foreign currencies is referred to as

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A decrease in the value of a domestic currency in terms of foreign currencies is referred to as a depreciation. An appreciation is an increase in the value of a domestic currency in terms of foreign currencies, a devaluation is a deliberate government policy to reduce the value of a domestic currency in terms of foreign currencies, and a revaluation is a deliberate government policy to increase the value of a domestic currency in terms of foreign currencies.

Under a Flexible Exchange Rate System, a Decrease in the Value