Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 7 Chinese yuan, but it finds that the value of yuan is depreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?

There is a ________ association between inflation and the growth rate of money ________

A) positive; demand B) positive; supply C) negative; demand D) negative; supply

Which of the following is not included in the U.S. balance of payments?

a. U.S. aid to Indonesian tsunami victims. b. U.S. corporate gifts to families who were harmed by hurricanes. c. Gifts from parents residing in foreign countries and paid to students studying at U.S. colleges and universities. d. All of the above are included in the balance of payments.