When a Currency Is Described as Overvalued, This Typically Implies

question 86

Multiple Choice

When a currency is described as overvalued, this typically implies:

• A) it is overvalued relative to the exchange rate set by the nation's central bank.
• B) it is selling at an exchange rate less than one.
• C) the exchange rate is higher than one year previous.
• D) its current market value is higher than the value that is thought to be consistent with purchasing power parity.

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