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In general, when market expectations indicate a non-credible peg, or when the costs of the peg are not greater than the benefits of pegging, what will be the equilibrium situation

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ayfat23

When market expectations indicate a noncredible peg, the equilibrium situation will depreciate. to peg.

What is equilibrium in economics?

Equilibrium is a condition where there is balance in economic forces.

The reason why equilibrium situation will depreciate in the given case is because the benefits from the peg is now lower than the cost.

Therefore, equilibrium will either shift right or left to annul changes in economy.

Learn more about Economic equilibrium at;

https://brainly.com/question/14297698

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