Asked by
Dennis Adzabe
on Nov 29, 2024
Verified
Devaluation of a nation's currency is an attempt to
A) increase imports and decrease exports under the gold standard.
B) increase imports and decrease exports under freely floating exchange rates.
C) increase exports and decrease imports under the gold standard.
D) increase exports and decrease imports under freely floating exchange rates.
Devaluation
Government policy that lowers the nation’s exchange rate so that its currency is worth less than it had been relative to foreign currencies.
Currency
Coins and paper money that serve as a medium of exchange.
Exports
Goods and services produced in a nation and sold to customers in other nations.
- Explain the impact of currency valuation/devaluation on international trade and investment.
Verified Answer
LS
Learning Objectives
- Explain the impact of currency valuation/devaluation on international trade and investment.