A revaluation can help reduce a(n):
I. inflationary gap
II. deflationary gap

Name: A revaluation can help reduce a(n): I. inflationary gap II. deflationary gap
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Question

Quizplus · Accepted Answer

A revaluation can help reduce an inflationary gap by increasing the value of the currency, which can slow down inflation by making imports cheaper and exports more expensive. However, it may not help reduce a deflationary gap as it can make exports more expensive and reduce aggregate demand.

A Revaluation Can Help Reduce A(n)