Under the Exchange Rate Mechanism of the European Monetary System, when the German mark depreciated below its lower limit against the British pound, the German central bank was required to buy ________ and sell ________,

Which of the following is a short-run decision for a muffin shop?

a. hire more workers b. add new ovens c. expand into the building next door d. open a second shop on the other side of town e. go out of business

If no one is holding cash, a U.S. trade deficit with China likely means

A. the Chinese are buying more U.S. assets than Americans are buying Chinese assets. B. the Chinese are selling more U.S. assets than Americans are selling Chinese assets. C. that next year the U.S. will run a trade surplus with China. D. the Chinese are buying fewer U.S. assets than Americans are buying Chinese assets.