Suppose That Japan Maintains a Pegged Exchange Rate That Overvalues

question 145

Multiple Choice

Suppose that Japan maintains a pegged exchange rate that overvalues the yen.Other things equal this would likely result in

• A) Japanese exports becoming cheaper in world markets.
• B) imports becoming expensive in the Japanese market.
• C) unemployment for Japanese workers.
• D) full employment for Japanese workers.

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Definitions:

Discrimination

Unfair or prejudiced treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Stereotype

A simplified and fixed image or idea of a particular type of person or thing, commonly held in a manner that dismisses individual differences.

Prejudice

A preconceived opinion or bias against a person, group, or topic that is not based on reason or actual experience.

Cognition

The process of obtaining knowledge and insight through mental effort, experiences, and sensory input.