Economics · Devaluation
What does the term 'devaluation' mean in macroeconomics?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A market-driven floating increase in the international purchasing power of a currency
- 2The deliberate downward adjustment of a currency's official value relative to a foreign benchmark currency✓
- 3An automated reduction in the domestic commercial bank interest rates by a central bank
- 4The absolute legal prohibition of foreign direct investment into a nation
Correct answer
The deliberate downward adjustment of a currency's official value relative to a foreign benchmark currency
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