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Question #62955

International Relations

Devaluation of a stat’s currency:

Options:

A) increases the total portfolio value of foreigners who hold that currency

B) causes a drop in demand for that currency

C) increases confidence in a state’s ability to meet its debts

D) is rarely a quick fix for financial problems in the short term

Answer: Devaluation of a stat’s currency: causes a drop in demand for that currency.

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