Refer to Figure 19-7. If the Indian government pegs its currency ...

[xroflmao]

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.

[Li Jun]

Answer to Question 1

C

Answer to Question 2

C