A currency is overvalued if its exchange rate vis-à-vis a foreign currency is:
A) at the equilibrium exchange rate. B) not pegged.
C) below the equilibrium exchange rate. D) above the equilibrium exchange rate.
D
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The supply curve for a good can be thought of as
A. a graphical display of “market potential.” B. a graphical representation of the data in a supply schedule. C. showing the maximum quantities that firms are able to produce. D. a forecasting tool. E. All of these responses are correct.
Give an example of a pair of variables that have a positive correlation, a pair of variables that have a negative correlation, and a pair of variables that have zero correlation
What will be an ideal response?
In the short run, monopolistically competitive firms behave like ________________, but in the long run, the profit of a firm is similar to that of ________________.
A. monopolies; perfectly competitive firms B. perfectly competitive firms; monopolies C. monopolies; oligopolies D. oligopolies; perfectly competitive firms
Suppose that a labor union negotiates an increase in wages of 4 percent for the coming year because annual inflation for the past five years has been 4 percent. The expectations formed by the union are:
a. pessimistic expectations. b. deductive expectations. c. rational expectations. d. adaptive expectations. e. optimistic expectations.