If, under a fixed exchange rate system, the dollar price of a Mexican peso is above its equilibrium level, then the
A) dollar is overvalued.
B) peso is overvalued.
C) dollar has appreciated.
D) peso has depreciated.
B
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The aggregate production function used in the Solow model expresses GDP as a function of:
A) level of technology and total efficiency units of labor only. B) physical capital and level of technology. C) physical capital and total efficiency units of labor only. D) physical capital, level of technology, and total efficiency units of labor.
In the classical and monetarist aggregate demand curves:
a. money is the primary factor driving changes in aggregate demand. b. taxes can never shift aggregate demand. c. government spending can never shift aggregate demand. d. changes in aggregate demand drive most recessions. e. both a and d.
A monopolistically competitive industry has
A) significant barriers to entry. B) differentiated products. C) mutually dependent firms. D) a small number of large firms.
Fiscal stimulus is most likely to direct resources into productive projects when spending decisions are left in the hands of
a. government agencies. b. consumers. c. Congress. d. lobbyists and special-interest groups.