During the Great Depression, countries that devalued their currencies generally ______ whereas countries that maintained the old exchange rate ______.
A) suffered longer; experienced no depression
B) recovered relatively quickly; experienced no depression
C) suffered longer; recovered relatively quickly
D) recovered relatively quickly; suffered longer

Question

Quizplus · Accepted Answer

Countries that devalued their currencies were able to make their exports cheaper and more competitive, leading to increased demand and economic growth. On the other hand, countries that maintained the old exchange rate found it difficult to compete in the global market, leading to longer periods of economic suffering.

During the Great Depression, Countries That Devalued Their Currencies Generally