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    Principles of Economics Study Set 1
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    Exam 28: Exchange Rates and the Open Economy
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    Based on This Figure, If the Krone Exchange Rate Is
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Based on This Figure, If the Krone Exchange Rate Is

Question 152

Question 152

Multiple Choice

Based on this figure, if the krone exchange rate is fixed at $0.15 dollars per krone, then the krone is: Based on this figure, if the krone exchange rate is fixed at $0.15 dollars per krone, then the krone is:   A) devalued. B) revalued. C) overvalued. D) undervalued.


A) devalued.
B) revalued.
C) overvalued.
D) undervalued.

Correct Answer:

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