Please discuss the difference between the terms devaluation and depreciation
What will be an ideal response?
Depreciation is a rise in the exchange rate E when the exchange rate floats, while devaluation is a rise in E when the exchange rate is fixed. Devaluation reflects a deliberate government decision, while depreciation is an outcome of government actions and market forces ("the invisible hand") acting together.
Economics
You might also like to view...
For economic growth to take place, we must consume more and save less.
a. true b. false
Economics
If the stock price of a company is higher than the discounted value of its future earnings,
a. Buy the stock only if the company has a sustained competitive advantage b. Don't buy the stock, even if the company has a sustained competitive advantage c. Always buy the stock d. None of the above
Economics