If there were five firms in an industry each with a 20% market share, what would the Herfindahl-Hirschman Index equal?

Which of the following statements is true?

A) It is easier to defend an overvalued currency than an undervalued currency since it is possible to print domestic currency and not foreign currency. B) It is easier to defend an undervalued currency than an overvalued currency since it is illegal to print domestic currency. C) It is easier to defend an undervalued currency than an overvalued currency since it is possible to print domestic currency. D) It is easier to defend an overvalued currency than an undervalued currency since it is possible to hold large reserves of foreign currencies.

Why do economists abstract, and is it appropriate?