Under Fixed Exchange Rates, Which One of the Following Statements

question 68

Multiple Choice

Under fixed exchange rates, which one of the following statements is the MOST accurate?

• A) Devaluation causes a decrease in output, a decrease in official reserves, and a contraction of the money supply.
• B) Devaluation causes a rise in output, a rise in official reserves, and an expansion of the money supply.
• C) Devaluation causes a rise in output and a rise in official reserves.
• D) Devaluation causes a rise in output and an expansion of the money supply.
• E) Devaluation causes a rise in official reserves, and an expansion of the money supply.

---

Definitions:

Streptococcus

A genus of spherical, Gram-positive bacteria that often cause infections in humans and animals.

Staphylococcus

A genus of gram-positive bacteria, often found on the skin and in the noses of people, which can cause a wide range of infections.

Impetigo Contagiosa

A highly contagious skin infection caused by bacteria, leading to red sores that can rupture and form honey-colored crusts.

Pigmented Spots

Marks on the skin that contain more melanin than surrounding areas, which can be benign or indicative of a condition.