A revaluation of the exchange rate is a policy action that
A) increases the real exchange rate.
B) decreases the real exchange rate.
C) increases the nominal exchange rate.
D) decreases the nominal exchange rate.
D
Economics
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If an emissions tax is imposed but it is less than the optimal Pigouvian tax, then:
a. the marginal social benefit of pollution is greater than the marginal social cost of pollution. b. the marginal social cost of pollution is greater than the marginal social benefit of pollution. c. total surplus will be maximized. d. the amount of pollution will be less than the socially optimal amount.
Economics
In the graph above, which points reflect an interest parity arbitrage opportunity?
A) point A B) point B C) point C D) points B and C
Economics