Which of the following statements is most accurate?
A) A revaluation restores internal and external balance immediately, without causing domestic inflation.
B) A devaluation restores internal and external balance immediately, without causing domestic inflation.
C) A revaluation restores internal and external balance immediately, but also causes domestic inflation.
D) A devaluation restores internal and external balance immediately, but also causes domestic inflation.
E) A devaluation restores external balance in the long run, without causing immediate domestic inflation.
Correct Answer:
Verified
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