Under Fixed Exchange Rate, Which One of the Following Statements

question 16

Multiple Choice

Under fixed exchange rate, 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:

Expressive Behaviors

Actions that communicate an individual's emotional state or intentions to others, ranging from facial expressions to body movements.

Physiological Arousal

The activation of the body's central nervous system, leading to physical responses such as increased heart rate and muscle tension.

Conscious Experience

The subjective awareness of one's thoughts, feelings, and environment, accessible to introspection and report.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, both, neither, or another gender.