Question: Let's assume that Malaysia is using the fixed exchange rate system. For the past 5 years, the country has set the target rate against the

Let's assume that Malaysia is using the fixed exchange rate system. For the past 5 years, the country has set the target rate against the USD at USD 0.20/MYR [MYR = Malaysian ringgit]. Today, the Malaysian government announces that it is revaluing the MYR. After the revaluation, which of the following is the most likely new target rate?

Group of answer choices

USD 0.20/MYR

USD 0.18/MYR

USD 0.22/MYR

USD 0.16/MYR

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