Under a flexible exchange rate system an increase in the value of a currency relative to other currencies is a called a _______ and under a fixed exchange rate system an increase in the official value of a currency is called a ________.

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An "appreciation" is an increase in the value of a currency relative to other currencies when exchange rates are flexible and respond to demand and supply. A revaluation is an increase in the official value of a currency in a fixed-exchange-rate system.

Under a Flexible Exchange Rate System an Increase in the Value