An exchange rate crisis is when:
a. the currency is stable.
b. the value of a currency declines dramatically.
c. the value of a currency increases dramatically.
d. a country fixes the price of its currency.
Ans: b. the value of a currency declines dramatically.
You might also like to view...
The break-even point refers to
A) the amount of autonomous consumption. B) a point at which planned real consumption is for greater than real disposable income. C) the point at which planned real consumption equals real disposable income. D) the maximum amount of dissaving a person can experience.
Which of the following would increase U.S. GDP?
a. Ford Motor Company begins to produce and sell cars in China. b. Mercedes-Benz begins to produce and sell cars in Mississippi. c. An American investor buys 100 shares of Ford stock. d. An American investor purchases 100 shares of Mercedes-Benz stock.