Author Question: Countries that borrow large amounts of money from foreign lenders prefer to: A) hold an ... (Read 73 times)

vHAUNG6011 · **on:** Jun 30, 2018

Countries that borrow large amounts of money from foreign lenders prefer to:

A) hold an undervalued currency. B) hold an overvalued currency.
C) have a high rate of unemployment. D) have a low rate of inflation.

Suppose India borrows 10,000 from the U.S. at the beginning of 2012. The flexible exchange rate is 50 Indian rupees per dollar.

Question 2

Unemployment that arises when there is a mismatch between the quantity of labor demanded and supplied is referred to as:

A) structural unemployment. B) disguised unemployment.
C) frictional unemployment. D) cyclical unemployment.