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Quiz8 - Quiz 8 1 A devaluation is when a country a allows...

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Quiz 8 1. A devaluation is when a country: a. allows its currency’s value to float. b. raises the fixed value of its currency. c. lowers the fixed value of its currency. d. allows its currency value to be set by the market. Answer: c 2. Suppose that on the gold standard, the U.S. fixes the price of an ounce of gold at $25. Great Britain fixes the price of gold at £16 per ounce. What is the implied exchange rate between the dollar and the pound? 3. The organization that was founded to lend reserves to member countries experiencing a temporary shortage in foreign exchange reserves is the
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