According to The Economist magazine's Big Mac index, one of the most overvalued currencies as of July 2008 was the Norwegian kroner. Which of the following is a likely implication of that fact?
A) That goods and services are more expensive in Norway than in the U.S.
B) That the Norwegian currency is going to be undervalued in the near future.
C) That the Norwegian currency is likely to appreciate in the near future.
D) That the Norwegian government is running a large deficit.
A
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The trade-to-GDP ratio for the United States reached its lowest point of the last 100 years
A) around 1900. B) around 1970. C) around World War II. D) around World War I. E) around 2008.
Actions that ignore the possible long-run benefits of cooperation and focus solely on short-run gains are
A) a zero-sum game. B) a negative-sum game. C) tit-for-tat strategic behavior. D) opportunistic behavior.
The negative slope of a production possibilities frontier is a graphic representation of opportunity cost
a. True b. False Indicate whether the statement is true or false
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to fall. b. Demand for real goods and services to remain the same and M2 money supply to rise. c. Demand for real goods and services to rise and M2 money multiplier to remain the same. d. Demand for real goods and services to remain the same and M2 money supply to fall.