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A Persistent Shortage of Yen at a Given Fixed Exchange

Question 122

Multiple Choice

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) undervalued; devaluation
B) undervalued; revaluation
C) overvalued; revaluation
D) overvalued; devaluation

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