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. greater; overvaluation
B. less; undervaluation
C. greater; undervaluation
D. less; overvaluation
Answer: C
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When new checkable deposits are created through loans,
a. the money supply contracts. b. excess reserves are destroyed. c. the money supply remains the same. d. the money supply expands. e. the required reserve ratio declines
If the dollar appreciates,
a. imports to the United States become more expensive for foreigners b. exports from the United States become more expensive for foreigners c. imports become more expensive for U.S. citizens. d. exports from the United States become cheaper e. the dollar will exchange for fewer units of a foreign currency
In this economic growth and production possibilities curve, the movement from the old production possibilities curve to the new one results in ______.
a. the same amount of food but less housing
b. the ability to have more food and more housing
c. fewer overall goods being available to consumers
d. the elimination of increasing opportunity costs
The "Big Five" macroeconomic variables with respect to agriculture
A) Represent key linkages between sectors in the food and fiber industry. B) Include the rate of interest, the unemployment rate, the rate of inflation, the rate of growth in GDP and the producer price index. C) Include the rate of foreign exchange, the rate of interest, the unemployment rate, the rate of inflation, and the rate of growth in GDP. D) None of the above.