Assume policy makers in a fixed exchange rate regime decide to peg the exchange rate at a lower level. This is called
A) a devaluation.
B) a revaluation.
C) a depreciation.
D) an appreciation.
B
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Which of the following is probably the best example of a free good?
A) The air in your college classroom B) A can full of garbage put out for trash collectors C) Interstate highways D) Free concert tickets, which were given to you by a friend
Sue offers to pay Al $50 for each painting of his that she sells in her gallery. Each painting sells for $75. The cost to Al of producing each painting is $55. Which of the following statements is TRUE about this contract?
A) This contract is efficient. B) This contract maximizes joint profit. C) Al will not participate in this contract. D) This is a fixed-fee contract.
A typical supply curve has
a. slope equal to zero. b. slope equal to infinity. c. negative slope. d. positive slope. e. constant slope.
If marginal utility is a positive number:
a. the more you purchase, the more total utility you get b. the more you purchase, the less total utility you get c. utility is not affected by more purchases d. none of these is correct