Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias

During the Chinese experience with pegging the yuan to the dollar, the yuan was ________. As a result, there was a ________ of dollars on the market, and the Chinese government had to purchase dollars to maintain the peg

A) undervalued; shortage B) undervalued; surplus C) overvalued; shortage D) overvalued; surplus

The financial crisis of 2007-2009 worsened after the failure of which firm?

A) General Motors B) Lehman Brothers C) Bear Stearns D) American International Group (AIG)