Question

In a fixed exchange rate system, when some government action increases the exchange rate, it is called

(a) Depreciation
(b) Appreciation
(c) Devaluation
(d) Revaluation​

Answer 1

Answer:

(c) Devaluation.

Explanation:

Beacuse when the currency's value increases its called the valuation of currency in fixed exchange rate system.

Answer 2

Depreciation
Because increase the value of domestic currency though market forces