Question: 1.When a currency is overvalued in relation to Purchasing Power Parity, it is expected to face a. devaluations to reflect purchasing power parity b. cheaper

1.When a currency is overvalued in relation to Purchasing Power Parity, it is expected to face

a. devaluations to reflect purchasing power parity b. cheaper imported goods c. more competitive markets d. an increase in the value of the purchasing power parity

2.

An appreciating currency will typically be

a.

bad for exporters because they will receive less money in their currency

b.

good for exporters because they will receive more money in their currency

c.

neither good or bad for exporters

d.

None of the above

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