If China were to adopt a floating exchange-rate regime, it would:
A. cause the U.S. trade balance with China to fall.
B. de-stabilize the entire world economy.
C. cause the Chinese trade balance to fall.
D. force the U.S. to adopt a fixed exchange rate to maintain the balance of trade.
Answer: C
Economics
You might also like to view...
A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of
A) cynical behavior in modern democracies. B) failing to consider the alternatives available to the government. C) a concern that people are not rational when they make decisions. D) using incentives to alter behavior.
Economics
Which of the following falls when bond prices rise?
a. Stock prices. b. Interest rates. c. Money demand. d. Money supply.
Economics