A Persistent Shortage of Yen at a Given Fixed Exchange

question 122

Multiple Choice

A persistent shortage of yen at a given fixed exchange rate (in dollars per yen) is evidence that the yen is ________ versus the dollar.This shortage can be reduced or eliminated through a ________ of the yen.

• A)undervalued; devaluation
• B)undervalued; revaluation
• C)overvalued; revaluation
• D)overvalued; devaluation

---

Definitions:

Then

At that time or subsequently.

Buy

To acquire something by paying for it; the act of purchasing.

Assertive

Characterized by confident and forceful behavior, often in expressing one's opinions or defending one's rights without being aggressive.

White Lead

A toxic chemical compound previously used in paint and cosmetics until its use was restricted due to health concerns.