Assume policy makers in a fixed exchange rate regime decide to ...

[jasdeep_brar]

Assume policy makers in a fixed exchange rate regime decide to peg the exchange rate at a lower level. This is called
 
  A) a devaluation.
  B) a revaluation.
  C) a depreciation.
  D) an appreciation.

Question 2

Explain Mathusian trap.
 
  What will be an ideal response?

[zoeyesther]

Answer to Question 1

B

Answer to Question 2

Thomas Robert Malthus, an English economist, argued that an increase in output would lead to a decrease in mortality, leading to an increase in population until output per person was back to its initial level. The stagnation of output per person is called a Malthusian trap.

[jasdeep_brar]

Thanks for the timely response, appreciate it

[ryhom]

Gracias!