When a currency is undervalued, international reserves ________ and the country has a balance-of-payments ________.

A. decrease; surplus
B. increase; surplus
C. increase; deficit
D. decrease; deficit


Answer: B

Economics

You might also like to view...

In a country with a working-age population of 200 million, 140 million people are employed and 20 million are unemployed. The size of the labor force is

A) 200 million. B) 160 million. C) 140 million. D) 20 million. E) 120 million.

Economics

Mattress savings are: a. used to buy bonds and shares

b. kept in a current account. c. kept in a savings account. d. kept on hand and not loaned out or invested.

Economics

Which would cause an increase in the supply of a product at a given price?

a. An increase in the costs of producing a substitute product b. A reduction in the cost of resources to produce the product c. An increase in the costs of producing a complementary product d. An increase in the price of the product

Economics

When the IMF provides loans to developing countries, it often requires these countries to adopt:

A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.

Economics