In a fixed exchange rate system, an increase in the exchange rate at which a currency is pegged is called a(n)

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In a fixed exchange rate system, if the exchange rate at which a currency is pegged increases, it is called a revaluation. A revaluation occurs when a government decides to increase the value of its currency relative to other currencies in the fixed exchange rate system. This can be done to reduce inflation, improve the balance of trade, or address other economic concerns.

In a Fixed Exchange Rate System, an Increase in the Exchange