Suppose a country with a fixed exchange rate decides to reduce ...

[deesands]

Suppose a country with a fixed exchange rate decides to reduce the price of its currency. This change in policy is called
 
  A) an appreciation.
  B) a depreciation.
  C) a peg.
  D) a devaluation.
  E) a revaluation.

Question 2

Assume that employment decreases by 3. Holding all other factors constant, we know with certainty that which of the following will occur?
 
  A) output will decrease by 3
  B) output per capita will decrease by 3
  C) output will decrease by less than 3
  D) the capital labor ratio will decrease
  E) none of the above

[sarajane1989]

Answer to Question 1

E

Answer to Question 2

C

[deesands]

Thank you

[sarajane1989]

Happy to help you