1932International RelationsMedium
Devaluation of a stat’s currency:
Acauses a drop in demand for that currency
Bincreases confidence in a state’s ability to meet its debts
Cis rarely a quick fix for financial problems in the short term
Dincreases the total portfolio value of foreigners who hold that currency
Correct answer
A. causes a drop in demand for that currency
Explanation
The correct answer is causes a drop in demand for that currency.