-Based on the diagram above,if the official value of the krone is fixed at $0.14 per krone,then the Norwegian krone is _________ and the international reserves of Norway will ___________ kroner per period.
A) undervalued;increase by 2,000
B) undervalued;increase by 3,500
C) overvalued;decrease by 1,500
D) overvalued;decrease by 1,200
E) overvalued;decrease by 3,500
Correct Answer:
Verified
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