Suppose the government of South Island fixes the exchange rate of its currency, the Islandia, in terms of the U.S. dollar. Initially the exchange rate is set at $1 per Islandia. In a crisis, the government changes the exchange rate to $0.50 per Islandia. This is an example of a(n):
A. devaluation
B. revaluation
C. depreciation
D. appreciation
Answer: A
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Refer to the scenario above. Which of the following will happen if Mike decides to mow his lawn by himself?
A) GDP will remain unchanged. B) Per capita income will increase. C) GDP will decrease. D) GDP will increase.
The official unemployment statistics may exaggerate the significance of unemployment by including the
A. Phantom unemployed. B. High school dropout. C. Discouraged worker. D. Underemployed.
Which of the following is an example of an open-access resource?
a. a city subway system b. a college education c. an elementary school education d. whales in the ocean e. pandas in the zoo
What are the operational components of central bank independence?
What will be an ideal response?