Why is China's currency undervalued?
A) The Asian miracle is over.
B) They do not trade with the U.S.
C) They do not allow their currency to appreciate despite large external surpluses.
D) They are stockpiling international reserves to protect against the next East Asian crisis.
E) They are not aware of the real value of their currency.
C
Economics
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If the desired reserve ratio is 10 percent and there is no currency drain, then a $100 increase in the monetary base leads the banking system to increase the quantity of money by
A) $1,000. B) $400. C) $900. D) $110. E) $1,100.
Economics
Use the following graph to answer the next question.
If aggregate demand curve shifts from AD2 to AD1, the effect on real GDP will be a decrease from ________.
A. Q3 to Q4 B. Q2 to Q4 C. Q3 to Q1 D. Q2 to Q1
Economics