What is the difference between a devaluation and a revaluation of a currency?
What will be an ideal response?
A devaluation is a reduction in a fixed exchange rate and a revaluation is an increase in a fixed exchange rate.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Banks still have a strong comparative advantage in extending __________ to __________ businesses
A) traded securities; small B) non-traded loans; small C) traded securities; large D) non-traded loans; large
According to the U.S. Robinson-Patman Act of 1936, price discrimination
A) is always illegal. B) is legal unless it harms competition. C) may be used to drive rivals out of business. D) can only be justified if the price discrimination is due to actual cost differences.
The reason why countries should specialise in producing a certain product for export is explained by:
(a) The Law of Comparative Advantage; (b) The Law of Absolute Advantage; (c) Both (a) and (b) above. (d) None of the above