A currency pegged at a value below the market equilibrium exchange rate is
A) achieving purchasing power parity. B) undervalued.
C) overvalued. D) None of the above are correct.
B
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An increase in the U.S. interest rate
a. raises the opportunity cost of holding dollars. b. induces households to increase consumption. c. shifts money demand to the right. d. leads to a depreciation of the U.S. dollar.
Macroeconomics is best described as the study of
A. the nation's economy as a whole. B. the relationship between inflation and wage inequality. C. very large issues. D. the choices made by individual households, firms, and governments.
All of the following are true regarding tacit collusion except which one?
A) It harms buyers. B) It is more likely when firms' costs are closely related and their products are close substitutes. C) It is more likely when barriers to entry are low. D) It is an informal, unstated agreement.
An economy grows when its population increases.
Answer the following statement true (T) or false (F)