When Multiple Countries Are Trying to Boost Their Economies by Lowering

question 122

Multiple Choice

When multiple countries are trying to boost their economies by lowering the value of their currency, it causes a situation referred to as:

• A) competitive revaluation.
• B) competitive devaluation.
• C) a speculative attack.
• D) speculative war.

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Definitions:

British Pounds

The currency of the United Kingdom, which is one of the world's major currencies traded internationally.

U.S. Exports

Goods and services produced in the United States and sold to other countries.

Outflow of Payments

The movement of money out of a particular country, company, or household, typically for the purpose of purchasing goods, services, or assets.

Inflow of Payments

The total amount of money coming into a firm, organization, or economy from various sources over a period of time.