Under a fixed exchange-rate system, a large fall in the market price (the exchange rate value) of a currency is called a(n) ________ of that currency.

A. revaluation
B. depreciation
C. devaluation
D. appreciation

Answer: C

Economics

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The main item in the current account balance is

A) net interest income. B) net transfers. C) net exports. D) net taxes.

Economics

The Vuvuza Corporation currently has 10 million shares of stock outstanding, the stock is trading for $42 per share, and its stock of capital goods is valued at $70 million

Based on the Tobin's q value for the Vuvuza Corporation, we would expect Vuvuza to A) increase its capital stock. B) depreciate more of its assets. C) issue more shares of stock to be able to afford to finance investment expenditures. D) cut back on current production.

Economics