The Purpose of Currency Devaluation Is to Cause a Depreciation

question 99

True/False

The purpose of currency devaluation is to cause a depreciation in a currency's exchange value.

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Definitions:

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured using current prices without adjusting for inflation.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to real GDP.

Per Capita Real GDP

An economic metric that measures the economic output of a country adjusted for inflation and divided by the total population.

Muffler

A device for reducing noise emitted by the exhaust of an internal combustion engine.