An exchange rate that has an officially fixed value greater than its fundamental or market equilibrium value is called a(n) ________ exchange rate.
A. overvalued
B. devalued
C. undervalued
D. depreciated
Answer: A
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Recall the Application. The experiment conducted by Blinder showed that the actual process of having committee meetings and discussions
A) improved the group's overall performance. B) tended to polarize the group into two distinct factions. C) magnified the individual group member's differences. D) related to the average performance of the individual group members.
If a monopoly is operating on the demand curve where price elasticity is equal to -3, and MR equals 2, then price is equal to
A) 3. B) 2. C) 1. D) 0.
Monopolistic competition and perfect competition are different in that monopolistically competitive firms: a. cannot earn profits in the short run
b. face firm demand curves that are less elastic than perfectly competitive firms. c. face substantial barriers to entry. d. earn economic profits in the long run.
The difference in unemployment rates between Europe and the U.S. has been narrowing partly because
a. tax rates in European countries are generally lower. b. economic conditions in Europe and the U.S have been converging. c. European and American labor unions have been coordinating their activities. d. of a change in labor market policies. e. Europe has been making it easier for workers to gain unemployment benefits