Which of the following is most likely to cause a rightward shift in the demand curve for dollars in exchange of the Chinese yuan?
A) An increase in the demand for Chinese products in the U.S.
B) An increase in the demand for U.S. products in China
C) A decrease in the demand for Chinese products in the U.S.
D) A decrease in the demand for U.S. products in China
B
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Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls and reserve-related (central bank) transactions become more negative (or less positive). b. The real risk-free interest rate rises and reserve-related (central bank) transactions become more negative (or less positive). c. The real risk-free interest rate falls and reserve-related (central bank) transactions remain the same. d. The real risk-free interest rate rises and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Albert Einstein once referred to compounding as
a. "an obsession among economists that defies explanation.". b. "the greatest mathematical discovery of all time.". c. his own discovery. d. John Maynard Keynes's greatest contribution.