Which one of the following statements is the most accurate?
A. Appreciation is a fall in E when the exchange rate is fixed while revaluation is a fall in E when the exchange rate is flexible.
B. Appreciation is a fall in E when the exchange rate floats while revaluation is a fall in E when the exchange rate is fixed.
C. Appreciation is a rise in E when the exchange rate floats while revaluation is a fall in E when the exchange rate is fixed.
D. Appreciation is a fall in E when the exchange rate floats while revaluation is a rise in E when the exchange rate is fixed.
Answer: B. Appreciation is a fall in E when the exchange rate floats while revaluation is a fall in E when the exchange rate is fixed.
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