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Author Question: Assume policy makers in a fixed exchange rate regime decide to peg the exchange rate at a lower ... (Read 192 times)

jasdeep_brar

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on: Jun 30, 2018
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?


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zoeyesther

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Reply #1 on: Jun 30, 2018
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

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

alexanderhamilton

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Reply 3 on: Yesterday
:D TYSM

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