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Under fixed exchange rates, which one of the following statements is the MOST accurate?

Chako

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8 years ago

Under fixed exchange rates, which one of the following statements is the MOST accurate?

Under fixed exchange rates, which one of the following statements is the MOST accurate?
A) Devaluation has no effect on output.
B) Devaluation causes a decrease in output and in official reserves.
C) Devaluation causes a rise in output.
D) Devaluation causes a rise in output and a decrease in official reserves.
E) Devaluation causes a decrease in output.

Textbook

International Economics: Theory and Policy

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 104 times

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machukian

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Chako Author

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#2

8 years ago

Correct!

machukian

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#3

8 years ago

Thanks for the feedback, I'm sure others will appreciate it too

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