Suppose the Chinese central bank wants to keep the exchange rate of its currency value constant over time. An increase in the demand for Chinese goods by American residents will lead the Chinese central bank to
A) coordinate with the U.S. central bank in order to increase the supply of the U.S. dollar in the foreign exchange market.
B) increase the demand for the Chinese currency in the foreign exchange market.
C) use its dollar reserves to buy the Chinese currency in the foreign exchange market.
D) sell the Chinese currency in exchange for U.S. dollars in the foreign exchange market.
D
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An organization of producers that limits the amount of a good produced is known as a
A) free market organization. B) collective. C) guild. D) co-op.
A small business owner earns $75,000 in revenue annually. The explicit annual costs equal $40,000. The owner could work for someone else and earn $20,000 annually. The owner's accounting profit is ________ and owner's economic profit is ________
A) $10,000, $10,000 B) $35,000, $10,000 C) $35,000, $55,000 D) $10,000, $55,000