Refer to Figure 11-4. Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment from

Adoption of a currency board

A) is one method for achieving a soft peg policy. B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences. C) mandates the use of currency in all domestic transactions. D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.

Underemployment occurs when: a. a firm hires fewer than the required number of workers, to save costs

b. a firm hires workers who do not possess the required skills that the job demands. c. a worker is over qualified and possesses more skills than what his job demands. d. a firm hires more than the required number of workers.