When a currency is described as overvalued, this typically implies:
A. the exchange rate is higher than one year previous.
B. it is overvalued relative to the exchange rate set by the nation's central bank.
C. its current market value is higher than the value that is thought to be consistent with purchasing power parity.
D. it is selling at an exchange rate less than one.
Answer: C
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In practice, money growth targeting was
A) a good idea. B) a policy introduced in the U.S. in the 1970s, which continues to the present. C) better than interest rate targeting. D) a failure.
To represent a worker, a union must
a. simply receive the worker's permission b. receive a unanimous approval in an election c. receive a majority of the workers' votes in an election d. receive at least two-thirds of the workers' votes in an election e. receive the permission of the employer
In the short run, a firm should shut down its business if price is less than:
A. ATC. B. AR. C. MC. D. AVC.
Refer to the following graph.
If this country is producing between point P and G, it will gain by ________ its production of good A and importing more ________.
A. decreasing; good B B. decreasing; good A C. increasing; good A D. increasing; good B