Refer to the figure above. If the exchange rate is fixed below E yuan per dollar:
A) the dollar is overvalued and the yuan is undervalued.
B) both the yuan and dollar are undervalued.
C) the dollar is undervalued and the yuan is overvalued.
D) both the yuan and dollar are overvalued.
C
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Differentiate between an oligopoly and a monopolistic competition on the basis of the number of firms and the degree of product differentiation
What will be an ideal response?
According to the rational expectations hypothesis, monetary policy can have real effects on such variables as real Gross Domestic Product (GDP) in the short run
A) only when the policy is anticipated. B) only when the policy is unsystematic and unanticipated. C) regardless of whether the policy is anticipated or unanticipated. D) when the Federal Reserve's open market committee operates as expected in either buying or selling bonds.
What is the best response of firm B, given firm A is charging a low price?
a. Charge a low price b. Charge a high price c. Charge zero, give the good away d. All of the above
Which of these is not assumed to be constant along a short-run aggregate supply curve?
What will be an ideal response?