Macroeconomics Study Set 48
Quiz 18: International Macroeconomics
A Devaluation of a Currency Tends to Decrease the Current
A devaluation of a currency tends to decrease the current account deficit.
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If a country revalues its currency, it increases its aggregate demand.
Britain has changed from a fixed exchange rate regime to a floating exchange rate regime.
A reduction in the value of a fixed rate currency is called a depreciation.
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