If the Government of a Country Is Maintaining an Overvalued

question 107

Multiple Choice

If the government of a country is maintaining an overvalued currency against the dollar,then the quantity of ________ in the foreign exchange market.

• A) dollars supplied will exceed the quantity of dollars demanded
• B) dollars demanded will equal the quantity of dollars supplied
• C) dollars demanded will exceed the quantity of dollars supplied
• D) domestic currency demanded will exceed the quantity of dollars supplied

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Definitions:

Milton Friedman

was an American economist known for his strong belief in free-market capitalism and for being a leading proponent of monetarism.

Economic Responsibility

Refers to the duty of organizations to make decisions that benefit the financial health of both the company and the wider economy.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving positioning a business for competitive advantage.

Economic Environment

The combination of economic factors that impact the operation and performance of businesses, including inflation, employment rates, economic policy, and market demand.