A country with an undervalued currency
A. will have a balance of payments deficit.
B. will accumulate reserves of foreign currencies.
C. will suffer losses of foreign reserves.
D. must intervene in the foreign-exchange market to buy its own currency.
Answer: B
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Three macroeconomic factors that affect the demand for money are:
A. capital, labor, and technology. B. the nominal interest rate, capital, and labor. C. globalization, skill-biased technological change, and labor mobility. D. the nominal interest rate, real income, and the price level.
Refer to Figure 13-11. What is the monopolistic competitor's profit maximizing price?
A) P1 B) P2 C) P3 D) P4
Cost-push inflation is caused by:
a. an increase in short-run aggregate supply. b. a decrease in short-run aggregate supply. c. an increase in long-run aggregate supply. d. a decrease in long-run aggregate supply.
Compared to the outcome when the firms are price takers, competitive price-searcher markets will result in
a. a wider variety of products and higher prices. b. less product variety and higher prices. c. a wider variety of products and lower prices. d. less product variety and lower prices.