A Decrease in the Official Value of a Currency in a Fixed-Exchange-Rate

question 201

Multiple Choice

A decrease in the official value of a currency in a fixed-exchange-rate system is called a(n)

• A) revaluation.
• B) devaluation.
• C) appreciation.
• D) depreciation.
• E) overvaluation.

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Definitions:

Labor-Supply Curve

A graph that shows the relationship between the wages workers receive and the amount of labor they are willing to supply.

Wage Affected

The impact on employees' earnings due to various factors like inflation, demand for labor, or changes in government policy.

Marginal Product

The growth in production resulting from one more unit of input.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the labor market.