Question: 13 14 QUESTION 13 What is the difference between depreciation and devaluation? O A. Depreciation refers to a fixed exchange rate, while devaluation refers to

13 14

QUESTION 13 What is the difference between depreciation and devaluation? O A. Depreciation refers to a fixed exchange rate, while devaluation refers to a floating exchange rate. OB. There is no difference. Depreciation refers to a floating exchange rate, while devaluation refers to a fixed exchange rate. QUESTION 14 Suppose a basket of goods costs $100 in the U.S. and 80 in Spain. If the exchange rate is $1.50 per euro, then the real exchange rate, in terms of U.S. baskets per Spanish basket, is A. 1.1 OB.0.8 OC. 1.2 OD.0.9 QUESTION 15 With a fixed exchange rate, what would be effective stabilization policy during a recession? fiersinnliv

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