Although the pegged exchange rate between the yuan and the U.S. dollar has undervalued the yuan, China has been reluctant to abandon the peg for fear that abandoning the peg would
A) increase exports and increase the current account deficit.
B) reduce capital inflows.
C) reduce exports and reduce economic growth.
D) increase Chinese holdings of dollars.
Ans: C) reduce exports and reduce economic growth.
Economics
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If the income elasticity of food is 0.72, then food is
A) a necessity and a normal good. B) a normal good. C) a necessity. D) an inferior good.
Economics
If Slick Shades, a sunglasses manufacturer, merges with Best Lens, a lens manufacturer, and the combined firm is able to reduce the number of accounting departments from two to one, the merger created ________.
A) managerial diseconomies B) technological interdependencies C) synergies D) a hold-up problem
Economics