Suppose a permanent increase in demand for the Argentinean peso causes a chronic shortage of this currency in the foreign exchange market. The Argentinean government should then:

a. request other countries to revalue their currency.
b. devalue the peso.
c. allow the peso to appreciate.
d. restricts exports.
e. restrict imports.


c

Economics

You might also like to view...

Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product

Indicate whether the statement is true or false

Economics

As long as the debt is internally held, there are no problems associated with the government going into debt

Indicate whether the statement is true or false

Economics

The study of health care provision in Delhi, India by Hammer and Das found:

A. doctors in public clinics were often more creative in diagnoses and care than doctors in private facilities. B. the implementation of national healthcare provisions had strong associations with quality of care. C. unless doctors were intrinsically motivated, no incentive exists for them to provide high quality care. D. doctors often worked at or beyond their knowledge frontier.

Economics

The term "capital," as used in macroeconomics, refers to

A) the plant, equipment, buildings, and inventories of raw materials and semi-finished goods. B) financial wealth. C) the sum of investment and government purchases of goods. D) investment.

Economics