Figure 30-7
-Refer to Figure 30-7. If the Indian government pegs its currency to the dollar at a value above $.02/rupee, we would say the currency is

Question

Figure 30-7 
-Refer to Figure 30-7. If the Indian government pegs its currency to the dollar at a value above $.02/rupee, we would say the currency is

Quizplus · Accepted Answer

If the Indian government pegs its currency at a value above the market rate of $.02/rupee, it means the currency is overvalued because it is set at a higher rate than what the market would naturally determine.

Figure 30-7 -Refer to Figure 30-7. If the Indian Government Pegs Its