When policy makers decide to revalue the currency,such an action generally represents
A)an increase in the pegged value of the domestic currency.
B)a decision to let the currency float.
C)a reduction in the foreign price level.
D)an increase in the domestic price level.
E) none of the above

Question

Quizplus · Accepted Answer

Revaluing a currency means that the government or central bank has decided to increase the value of its currency in terms of a foreign currency or basket of currencies. This is typically done under a fixed or pegged exchange rate system, where the value of the domestic currency is adjusted upward relative to the currency it is pegged to.

When Policy Makers Decide to Revalue the Currency,such an Action