Foreign Exchange Market Intervention Like Devaluation or Revaluation Occurs

question 105

Multiple Choice

Foreign exchange market intervention like devaluation or revaluation occurs

• A)when a central bank changes interest rates.
• B)whenever there is countercyclical fiscal policy.
• C)only if a country has adopted a flexible exchange rate policy.
• D)when a country's government buys or sells foreign currency to affect its exchange rate.
• E)only when countries want to permanently alter exchange rates.

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