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Chapter 18: Q1CU (page 638)

Question: Look at the data in Figure 18-8. Where do you see devaluations and revaluations of the franc against the mark?

Short Answer

Expert verified

Yes, devaluations and revaluations were seen between 1971 to 1995.

Step by step solution

01

Explanation

Revaluation of the currency means an increase in the currency's value in the view of foreign currency. Devaluation of the currency means a decrease in the currency's value in the view of foreign currency. The devaluation and revaluation are required when the exchange rate changes suddenly—like 1974, 1976, 1981, 1986, 1993, and 1994.

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