Exchange Rates and the Balance of Payments (id: ad99e16fb)

本题目来源于试卷: Exchange Rates and the Balance of Payments，类别为 IB经济学

[单选题]
Which of the followi/4z3pg.vvo 1eanas l8a2y2 hhng polici* qdx1:h wy jg8 nc;k;ir9m)tces is consistent with its objective?

	Policy	Objective
A.	Devaluation	Reducing inflation
B.	Revaluation	Reducing unemployment
C.	Devaluation	Reduce a current account surplus
D.	Revaluation	Improve living standards

A.
B.
C.
D.


参考答案:  D


本题详细解析:

D

$\underset{‾}{\text{Explanation}}$:
Revaluing a currency can improve a nation's standard of living, as a stronger currency can purchase more imports, the consumption of which increase living standards.

Choice A is wrong as devaluation is expansionary, which means it would cause demand-pull inflation.

Choice B is wrong as revaluation is contractionary, which means unemployment would increase as a result.

Choice C is wrong as devaluation would increase net exports, which would increase a current account surplus.

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