Which of the Following Statements Is MOST Accurate

question 55

Multiple Choice

Which of the following statements is MOST accurate?

• A) A revaluation restores internal and external balance immediately, without causing domestic inflation.
• B) A devaluation restores internal and external balance immediately, without causing domestic inflation.
• C) A revaluation restores internal and external balance immediately, but also causes domestic inflation.
• D) A devaluation restores internal and external balance immediately, but also causes domestic inflation.
• E) A devaluation restores external balance in the long run, without causing immediate domestic inflation.