In a Noncooperative Pegged Situation, When the Home Country Devalues

question 42

Multiple Choice

In a noncooperative pegged situation, when the home country devalues in response to an external shock the:

• A) foreign nation will also devalue, endangering the peg.
• B) home country suffers the entire burden.
• C) resulting depreciation causes a large shift in demand from the foreign nation to the home country, thereby exporting the recession to the foreign nation.
• D) nations agree to switch their peg to the U.S. dollar.

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Definitions:

Contractile Vacuole

An organelle found in some protozoa, which expels excess liquid on contraction.

Euglenoids

A diverse group of unicellular protists, often with photosynthetic capabilities, belonging to the genus Euglena.

Excess Water Removal

The process by which organisms eliminate surplus water to maintain fluid balance, often involving specific organs like kidneys in humans.

Protists

A diverse group of eukaryotic microorganisms, which are neither plants, animals, nor fungi, and may be unicellular or multicellular.