Which of the following statements regarding exchange rate intervention is FALSE?
A) A devaluation can be used to increase exports and reduce imports.
B) A devaluation can be used to eliminate a recessionary gap.
C) A revaluation can be used to eliminate a recessionary gap.
D) Devaluations and revaluations can be used to eliminate shortages or surpluses in the foreign exchange market.
Correct Answer:
Verified
Q227: Under fixed exchange rates, a devaluation:
A) decreases
Q235: Which of the following countries switched from
Q236: Which of the following countries did NOT
Q237: After the Bretton Woods agreement broke down
Q238: An increase in the value of a
Q240: A reduction in the value of a
Q241: The 2001 devaluation of the Argentine peso
Q246: After a revaluation, all other things equal,
Q250: The pound sterling floats. If its exchange
Q251: With a floating exchange rate:
A) monetary policy
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