Which of the Following Would Be Evidence That a Country

question 87

Multiple Choice

Which of the following would be evidence that a country with a fixed exchange rate has an undervalued currency?

• A) The government has a budget surplus.
• B) The government has a budget deficit.
• C) The central bank's foreign-currency reserves are increasing.
• D) The central bank's foreign-currency reserves are decreasing.

---

Definitions:

Brainstem

The lower part of the brain that connects the cerebrum with the spinal cord and controls vital bodily functions such as breathing, heart rate, and blood pressure.

Medulla

A region at the base of the brainstem that controls vital life-sustaining functions such as heartbeat, breathing, blood pressure, and digestion.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.

Neurons

Cells in the nervous system specialized for the transmission of information via chemical and electrical signals.