A Revaluation of a Currency, Holding Everything Else Constant

question 22

Multiple Choice

A revaluation of a currency, holding everything else constant:

• A)makes foreign goods more attractive in the domestic economy.
• B)leads to an increase in aggregate demand and can therefore be expansionary.
• C)increases the balance of payments account toward a surplus.
• D)leads to a merchandise trade surplus.

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Definitions:

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