The Main Reason(s) Why Governments Sometimes Choose to Devalue Their

Multiple Choice

The main reason(s) why governments sometimes choose to devalue their currencies is (are)

A) devaluation makes domestic goods more expensive in relation to foreign goods.
B) devaluation makes domestic services more expensive in relation to foreign services.
C) devaluation increases foreign reserves held by the central bank.
D) devaluation improves the current account and increases foreign reserves held by the central bank.
E) devaluation hurts foreign currencies.