Suppose that in the free market, where the supply of the foreign currency is equal to demand for that currency, the peso-dollar exchange rate is 4 pesos = $1
Assume the central bank sets an official exchange rate at 3 pesos = $1, we can say that in the official market the dollar is A) overvalued.
B) undervalued.
C) appreciated.
D) None of the above.
B
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The figure above shows the market for annual influenza immunizations the United States. Area B is the
A) gain in efficiency from the illustrated subsidy. B) remaining deadweight loss when there is the illustrated subsidy. C) deadweight loss when there is not the illustrated subsidy. D) equilibrium with the illustrated subsidy. E) loss in efficiency from the illustrated subsidy.
China's economic reforms have focused on
A) privatizing state-owned enterprises and increasing efficiency. B) reducing persistent inflation and current account deficits. C) transitioning from socialism and toward private ownership. D) reducing exchange rate instability.