An Increase in the Value of a Fixed Rate Currency

question 270

True/False

An increase in the value of a fixed rate currency is called a revaluation.

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Definitions:

Free Trade

A policy by which governments do not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports) or quotas.

Domestic Producers

Local manufacturers or producers who create goods and services within a country's borders, contributing to the domestic economy.

Foreign Producers

Companies or individuals that produce goods or services in a country other than the one where the goods or services are consumed.

Tariff Revenue

The income generated by the government from taxing imports.