A country with an undervalued currency
a. will have a balance of payments deficit.
b. will accumulate reserves of foreign currencies.
c. will suffer losses of foreign reserves.
d. must intervene in the foreign exchange market to buy its own currency.
b
You might also like to view...
According to the text, minimum-wage laws cause increases in
A) productivity. B) employment possibilities. C) poverty. D) structural unemployment.
National debt decreases in a given year when a country has
A) a budget deficit. B) a balanced budget. C) a budget supplement. D) a budget surplus. E) no discretionary fiscal policy.
Most economists believe that the higher average salaries earned by men in comparison to women arise from
a. discrimination. b. a variety of factors, including differences in human capital and compensating differentials; few economists believe that gender discrimination in earnings exists. c. differences in human capital as the primary reason. d. a variety of factors, including differences in human capital, compensating differentials, and discrimination.
In a fractional-reserve banking system, an increase in reserve requirements
a. increases both the money multiplier and the money supply. b. decreases both the money multiplier and the money supply. c. increases the money multiplier, but decreases the money supply. d. decreases the money multiplier, but increases the money supply.