Refer to Figure 19-5. Suppose the pegged exchange rate is $0.11/yuan. Because of safety concerns and numerous product recalls, U.S. consumers lower their demand for Chinese products. Using the figure above, this would
A) decrease the shortage of Chinese yuan. B) decrease the surplus of Chinese yuan.
C) increase the surplus of Chinese yuan. D) increase the shortage of Chinese yuan.
A
Economics
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The real risk-free interest rate is equal to:
a. The difference between the nominal interest rate and expected inflation. b. The tradeoff that society must make between consuming now and consuming later. c. The rate at which the International Monetary Fund borrows from the World Bank. d. The rate at which banks lend to their best customers (i.e., lowest credit risk). e. None of the above is correct.
Economics
An increase in production in the short run definitely results in an increase in
A. Average total costs. B. Average fixed costs. C. Total costs. D. Marginal costs.
Economics