A Devaluation of the Exchange Rate Is a Policy Action

question 52

Multiple Choice

A devaluation of the exchange rate is a policy action that

• A) increases the real exchange rate.
• B) decreases the real exchange rate.
• C) increases the nominal exchange rate.
• D) decreases the nominal exchange rate.

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Definitions:

Intentional Infliction

A tort action for engaging in extreme and outrageous conduct that intentionally or recklessly causes severe emotional distress to another.

Emotional Distress

A legal term for suffering that goes beyond physical pain to include fear, anxiety, loss of enjoyment, or other psychological injuries.

Intentional Infliction

The act of deliberately causing severe emotional distress to another person through extreme or outrageous conduct.

Actual Malice

Real and demonstrated evil intent. In a defamation suit, a statement made about a public figure normally must be made with actual malice—with either knowledge of its falsity or a reckless disregard of the truth—for liability to be incurred.