Under a fixed exchange rate system such as the gold standard, __________ is when a country increases the units of currency equal to one ounce of gold.

Question

Quizplus · Accepted Answer

Devaluation is the correct term when a country decides to increase the number of its currency units that are required to purchase one ounce of gold under a fixed exchange rate system like the gold standard. This effectively reduces the value of the currency in terms of gold.

Under a Fixed Exchange Rate System Such as the Gold