Figure 30-3

-Refer to Figure 30-3. If the Indian government pegs its currency to the dollar at a value below $.02/rupee,we would say the currency is

Question

Figure 30-3
 
-Refer to Figure 30-3. If the Indian government pegs its currency to the dollar at a value below $.02/rupee,we would say the currency is

Quizplus · Accepted Answer

If the Indian government pegs its currency to the dollar at a value below $.02/rupee, then the currency would be undervalued. This means that the value of the currency is lower than what it should be based on economic fundamentals, which can make Indian goods and services cheaper for foreign buyers and help boost exports.

Figure 30-3 -Refer to Figure 30-3. If the Indian Government Pegs Its