Based on this figure, if the official value of krone is fixed at $0.09 per krone, then the Norwegian krone is ________ and the international reserves of Norway will ________ krone per period. 

A. overvalued; decrease by 5,500
B. undervalued; increase by 2,000
C. undervalued; increase by 5,500
D. overvalued; decrease by 2,000


Answer: C

Economics

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