If most major economies are operating under a regime of fixed exchange rates, then a ________ in a country's balance of payments suggests that the country should ________ its currency.
A) surplus; revalue
B) surplus; devalue
C) deficit; revalue
D) all of the above

Question

Quizplus · Accepted Answer

In a fixed exchange rate system, a surplus in the balance of payments indicates that the currency is undervalued, suggesting the country should revalue its currency to correct the imbalance.

If Most Major Economies Are Operating Under a Regime of Fixed