Currency devaluations have the potential to reduce unemployment, while currency revaluations have the potential to reduce inflation.

Question

Quizplus · Accepted Answer

This statement is true as a devaluation of a currency can make exports cheaper and more competitive, leading to increased demand for goods and potentially creating more jobs. On the other hand, a revaluation of a currency can make imports cheaper, potentially reducing inflation as the cost of goods decreases.

Currency Devaluations Have the Potential to Reduce Unemployment, While Currency