Which of the following is an argument of opponents of ...

[vicotolentino]

Which of the following is an argument of opponents of devaluations?
 
  A) Devaluations cause relatively slow adjustments.
  B) Participants in foreign exchange markets have a short memory: if the expected devaluation doesn't occur within a short time-period, they will stop expecting it.
  C) A devaluation causes a nation with fixed exchange rates to lose credibility in the medium run, driving its interest rate higher.
  D) all of the above
  E) none of the above

Question 2

Suppose the following situation exists for an economy: Kt+1/N = Kt/N. Given this information, we know that
 
  A) saving per worker equals depreciation per worker in period t.
  B) saving per worker is less than depreciation per worker in period t.
  C) saving per worker is greater than depreciation per worker in period t.
  D) the saving rate fell in period t.
  E) steady state consumption is equal to the golden rule level of steady state consumption.

[angrybirds13579]

Answer to Question 1

C

Answer to Question 2

A

[vicotolentino]

Gracias!

[bitingbit]

Thanks for the timely response, appreciate it