Referring to Figure 17.1, if the British pound is pegged at $2.50 per pound the pound will be:
A. Overvalued.
B. Undervalued.
C. Devalued.
D. In equilibrium.
Answer:A
Referring to Figure 17.1, if the British pound is pegged at $2.50 per pound the pound will be:
A. Overvalued. B. Undervalued. C. Devalued. D. In equilibrium.