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Social Science Clinic => Economics => Topic started by: xroflmao on Jun 29, 2018

Title: Refer to Figure 19-7. If the Indian government pegs its currency to the dollar at a value above ...
Post by: xroflmao on Jun 29, 2018

Refer to Figure 19-7. If the Indian government pegs its currency to the dollar at a value above .02/rupee, we would say the currency is
 
  A) parity valued. B) undervalued.
  C) overvalued. D) equilibrium valued.

Question 2

If inflation is completely anticipated,
 
  A) lenders lose in the economy. B) borrowers lose in the economy.
  C) firms lose because they incur menu costs. D) no one loses in the economy.

Title: Refer to Figure 19-7. If the Indian government pegs its currency to the dollar at a value above ...
Post by: Li Jun on Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

C