A "devaluation" occurs when

Question

Quizplus · Accepted Answer

A devaluation occurs when the official price of a currency is lowered. This typically happens when a country's central bank or government decides to decrease the value of its currency relative to other currencies. This can be done through various policies, such as lowering interest rates or printing more money. The purpose of devaluing a currency is to make a country's exports more competitive by making them cheaper for foreign buyers, and to reduce imports by making them more expensive for domestic consumers.

A "Devaluation" Occurs When