Refer to Figure 19-11. The graph above depicts supply and demand for British pounds during a trading day. At a fixed exchange rate of $2.00 per pound, the pound is ________ versus the dollar
A ________ of the pound would correct the fundamental disequilibrium that exists in this market.
A) overvalued; devaluation B) overvalued; revaluation
C) undervalued; devaluation D) undervalued; revaluation
A
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When the value of a currency is determined mostly by demand and supply, but with occasional government intervention, the exchange rate system is defined as
A) floating. B) fixed. C) Bretton Woods. D) managed float.
Employment in the tertiary sector in the 20th century showed
(a) a marked cyclical tendency in harmony with the business cycle. (b) a leveling off in times of recession. (c) a downturn during cyclical expansions. (d) a steady increase since 1900.
When factors of production are not fixed (as in the long run) and labor immigrates, capital will:
a. remain fixed because capital is never mobile. b. increase in the capitalintensive industry. c. move to the higher productivity use in the labor intensive industry until returns are again equalized. d. become idled as owners of capital seek more profitable opportunities.
In theory, ___________ advocates the abolition of private property.
A. Capitalism B. Communism C. Socialism D. Fascism