Which One of the Following Statements Is the MOST Accurate

question 4

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) Depreciation is a rise in E when the exchange rate is fixed while devaluation is a rise in E when the exchange rate floats.
• B) Depreciation is a decrease in E when the exchange rate floats while devaluation is a rise in E when the exchange rate is fixed.
• C) Depreciation is a rise in E when the exchange rate floats while devaluation is a rise in E when the exchange rate is fixed.
• D) Depreciation is a rise in E when the exchange rate floats while devaluation is a decrease in E when the exchange rate is fixed.
• E) Depreciation is a fall in E when the exchange rate is fixed while devaluation is a fall in E when the exchange rate floats.

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Definitions:

Apples

A widely consumed fruit, known for its crispiness and variety of flavors, often used as a symbol for health and education.

Utility Function

A mathematical representation of how different combinations of goods or services generate levels of happiness or satisfaction for a consumer.

Income

The money received by an individual or entity, typically on a regular basis, for work or through investments.

Consumption

The use of goods and services by households or individuals, leading to the reduction of their life span or value.