Under a fixed exchange rate system, if a exchange rates are allowed to fall, we say the currency has been devalued.

Name: Under a fixed exchange rate system, if a exchange rates are allowed to fall, we say the currency has been devalued.
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Question

Quizplus · Accepted Answer

Devaluation refers to the intentional lowering of a currency's value in relation to other currencies, which can be achieved by allowing exchange rates to fall in a fixed exchange rate system. Therefore, the statement is true.

Under a Fixed Exchange Rate System, If a Exchange Rates