Refer to Figure 19-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then this was evidence of ________ and the IMF would allow a ________ in the
exchange rate.
A) fundamental disequilibrium; revaluation B) fundamental disequilibrium; devaluation
C) fundamental overvaluation; revaluation D) fundamental overvaluation; devaluation
A
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In a barter system individuals
A) find it impossible to specialize. B) must be entirely self-sufficient. C) find it difficult to specialize, but may be able to do so. D) will almost invariably specialize.
A budget constraint:
A. shows a constant dollar amount spent on different combinations of goods, and each bundle brings the same utility. B. shows a constant dollar amount spent on different combinations of goods, and each bundle brings a different amount of utility. C. shows a constant amount of utility gained by consuming different combinations of goods, and each bundle costs the same. D. None of these is true.
Those who think that a popular investment is necessarily a good investment often find themselves earning low returns
Indicate whether the statement is true or false
The average outcome from an uncertain gamble is the _______________
Fill in the blank(s) with the appropriate word(s).