Under Fixed Exchange Rates, Which One of the Following Statements

question 68

Multiple Choice

Under fixed exchange rates, which one of the following statements is the MOST accurate?

• A) Devaluation causes a decrease in output, a decrease in official reserves, and a contraction of the money supply.
• B) Devaluation causes a rise in output, a rise in official reserves, and an expansion of the money supply.
• C) Devaluation causes a rise in output and a rise in official reserves.
• D) Devaluation causes a rise in output and an expansion of the money supply.
• E) Devaluation causes a rise in official reserves, and an expansion of the money supply.

---

Definitions:

Instrumental Morality

A stage in moral development where the individual's moral choices are based on the consequences or benefits of their actions to themselves.

Kohlberg

Kohlberg's theory refers to the stages of moral development in individuals, emphasizing the progression through pre-conventional, conventional, and post-conventional levels.

Egocentric Perspectives

A cognitive stance where an individual perceives the world solely from their own viewpoint, ignoring or not understanding the perspectives of others.

Middle Childhood

A developmental stage that typically refers to children aged between 6 to 12 years, where significant cognitive, emotional, and social growth occurs.