A strong U.S. dollar is one that has:

For a country with a fixed exchange rate, foreign exchange reserves are

A) an asset of the domestic government. B) a liability of the domestic government. C) held by private banks. D) are unnecessary.

Underlying economic theory is the idea that

A) people respond only to negative incentives, not to positive ones. B) choices are affected by both positive and negative incentives. C) value judgments do not play a role in the economic decisions people make. D) money is the only incentive that matters.