Question: Was this a depreciation , devaluation , appreciation , or revaluation ? Explain. ( Select all the choices that apply. ) A . Anytime a
Was this a depreciation devaluation appreciation or revaluation Explain.Select all the choices that apply.
A
Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either a "revaluation" or "depreciation." In this case, a revaluation.
B
Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either a "revaluation" or "devaluation." In this case, a devaluation.
C
Anytime a government sets or resets the value of its currency, it is a managed or fixed exchange rate. If that is the case, any change in its official value must be either an "appreciation" or "devaluation." In this case, an appreciation.
D
This is evident from the fact that it now takes more pesos per US dollar, so its value is less or devalued. In terms of the percentage change calculation, this is indicated by the negative percentage change.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
