Homework Clinic

Social Science Clinic => Economics => Macroeconomics => Topic started by: burchfield96 on Mar 16, 2019

Title: Refer to Figure 19-7. Which of the following is true?
Post by: burchfield96 on Mar 16, 2019

Question 1

Figure 19-7











Refer to Figure 19-7.  At what level should the Indian government peg its currency to the dollar to make U.S. imports cheaper in India?

◦ greater than $.02/rupee
◦ less than $.02/rupee
◦ equal to $.02/rupee
◦ $1/rupee

Question 2

Figure 19-7











Refer to Figure 19-7.  Which of the following is true?

◦ U.S. imports are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate.
◦ The rupee is overvalued at exchange rates less than $.02/rupee.
◦ To achieve an exchange rate greater than $.02/rupee, the Reserve Bank of India must buy surplus dollars with rupees.
◦ Indian exports to the United States are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate.

Title: Refer to Figure 19-7. Which of the following is true?
Post by: sultansheikh on Mar 16, 2019

Answer 1

greater than $.02/rupee

Answer 2

Indian exports to the United States are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate.

Title: Refer to Figure 19-7. Which of the following is true?
Post by: burchfield96 on Mar 16, 2019

Thanks

Title: Refer to Figure 19-7. Which of the following is true?
Post by: sultansheikh on Mar 16, 2019

Welcome :)