A persistent shortage of yen at a given fixed exchange rate (in dollars per yen) is evidence that the yen is ________ versus the dollar. This shortage can be reduced or eliminated through a ________ of the yen.
A) overvalued; revaluation B) undervalued; devaluation
C) overvalued; devaluation D) undervalued; revaluation
Question 2
Damian shares a small food truck with his sister. His share of the expenses is 500 per month. He has decided to get his own, newer food truck which he will not have to share with anyone. His expenses for the newer truck are 1,400 per month.
Damian is as rational as any other person. As an economics major, you rightly conclude that
A) Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least 900.
B) Damian cannot afford the newer truck and will have to go back to sharing a truck with his sister.
C) Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least 1,400.
D) the cost of having one's own truck outweighs the benefits.
Cation binding and exchange.
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