The Devaluation of a Country's Currency

question 18

Multiple Choice

The devaluation of a country's currency:

• A) makes foreign products more expensive for consumers in that country.
• B) increases foreign demand for that country's exports.
• C) can lead to deflation in that country.
• D) A and B

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Definitions:

Andes

A major mountain range along the western edge of South America, formed by the subduction of the Nazca Plate beneath the South American Plate.

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic materials (such as ash and rock fragments) that flow down the slopes of a volcano during an explosive eruption.

Mudflows

Rapid flows of water-saturated earth material, primarily composed of mud and often triggered by heavy rains or volcanic activity.

River Valley

a long, narrow region carved by river erosion, often surrounded by hills or mountains.