Author Question: If it is said that a currency is overvalued against the dollar, it is meant that: A) the dollar ... (Read 165 times)

deesands · **on:** Jun 30, 2018

If it is said that a currency is overvalued against the dollar, it is meant that:

A) the dollar is worth more of that currency than it would have been under a fixed exchange rate regime.
B) the dollar is worth less of that currency than it would have been under a fixed exchange rate regime.
C) the dollar is worth less of that currency than it would have been under a flexible exchange rate regime.
D) the dollar is worth less of that currency than it would have been under a managed exchange rate regime.

Question 2

The long-run aggregate supply curve is horizontal.

Indicate whether the statement is true or false