Although the pegged exchange rate between the yuan and the dollar has undervalued the yuan, China had been reluctant to abandon the peg for fear that abandoning the peg would
A) increase Chinese holdings of dollars.
B) reduce exports and reduce economic growth.
C) reduce capital inflows.
D) increase exports and increase the current account deficit.
B
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Suppose that Paraguay can produce 12 wheat or 3 corn and Bolivia can produce 4 wheat or 2 corn. Suppose that opportunity costs are constant. Which of the following is a potentially agreeable trade arrangement for Paraguay and Bolivia?
A) Paraguay trades one corn to Bolivia for three units of wheat. B) Bolivia trades one corn to Paraguay for three units of wheat. C) Bolivia trades one corn to Paraguay for one wheat. D) Paraguay trades one wheat to Bolivia for two corn.
Members of the Board of Governors of the Federal Reserve are appointed by the President and approved by the Senate to serve a 14-year term
Indicate whether the statement is true or false