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Which of the Following Correctly Distinguishes Between Depreciation and Devaluation

Question 16

Multiple Choice

Which of the following correctly distinguishes between depreciation and devaluation?


A) Market interactions cause currencies to depreciate, but only governments can enact policies of devaluation.
B) Market interactions can cause either, but policy decisions by governments can produce only depreciation.
C) Market interactions can cause either, but policy decisions by governments can produce only devaluation.
D) Market interactions can cause either, but only policy decisions by governments can produce a devaluation.
E) None of the above.

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