Figure 19-7
-Refer to Figure 19-7.If the Indian government pegs its currency to the dollar at a value below $.02/rupee,we would say the currency is

Question

Figure 19-7 
-Refer to Figure 19-7.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, it means that the Indian currency is undervalued. This is because the relative value of the Indian currency is less than its true value compared to the US dollar.

Figure 19-7 -Refer to Figure 19-7.If the Indian Government Pegs Its Currency