When multiple countries are trying to boost their economies by lowering the value of their currency, it causes a situation referred to as:
A) competitive revaluation.
B) competitive devaluation.
C) a speculative attack.
D) speculative war.

Question

Quizplus · Accepted Answer

When multiple countries are trying to boost their economies by intentionally reducing the value of their currency, it creates a situation of competitive devaluation. In this scenario, each country aims to make their exports cheaper and more attractive in the global market while making imports more expensive. This can lead to a trade war and increase volatility in the foreign exchange market.

When Multiple Countries Are Trying to Boost Their Economies by Lowering