If the fundamental value of the exchange rate is ________ than the official (fixed) exchange rate, the country has an ________ problem, and it will gain reserves
A) less; overvaluation
B) greater; overvaluation
C) less; undervaluation
D) greater; undervaluation
D
You might also like to view...
Firms such as Taco Bell and Chipotle operate hundreds of restaurants nationwide while firms such as El Pollo Loco operates only in five states. How would you characterize these stores?
A) Taco Bell and Chipotle are duopolists while El Pollo Loco is a monopolistic competitor. B) They are all monopolistic competitors. C) Taco Bell and Chipotle are duopolists while El Pollo Loco is an oligopolist. D) Taco Bell and Chipotle are oligopolists while El Pollo Loco is a monopolistic competitor.
Is wage discrimination more likely in competitive or monopolistic markets?
What will be an ideal response?
If a decrease in income leads to an increase in the demand for macaroni, then macaroni is
A) an inferior good. B) a neutral good. C) a necessity. D) a normal good.
The rational expectations perspective suggests that:
A. fiscal policy is more powerful than monetary policy. B. monetary policy is more powerful than fiscal policy. C. fiscal and monetary policy are not likely to achieve their stated aims. D. fiscal policy works only to the extent that it is accompanied by fully anticipated changes in the money supply.