In Contrast to Undervalued Currencies, Overvalued Currencies

question 38

Multiple Choice

In contrast to undervalued currencies, overvalued currencies:

• A) make it easier for a country to pay down foreign debts.
• B) boost domestic manufacturing sectors.
• C) make foreign trading unfavorable for domestic industries.
• D) make imports expensive.

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Definitions:

Class Inclusion

A cognitive ability that involves understanding that objects can belong to more than one category at the same time.

Conservation Skills

Cognitive abilities to understand that quantity, length, or number do not change when nothing is added or taken away, despite changes in form or appearance.

Centration

A cognitive limitation in preoperational stage children where they can focus on only one aspect of a situation at a time.

Reversibility

The cognitive ability to understand that actions can be reversed, restoring the original state.