China began pegging its currency, the yuan, to the dollar in 1994. Because the yuan was ________ at the pegged exchange rate, the level of Chinese exports remained ________ than they would have been if the exchange rate were allowed to float freely
A) overvalued; lower B) overvalued; higher
C) undervalued; higher D) undervalued; lower
C
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The United States experienced depressions in all of the following decades except
A. the 1890s. B. the 1920s. C. the 1930s. D. the 1950s.
Assume that the supply curve for a commodity shifts to the right and the demand curve shifts to the left, both by the same degree. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a lower price and quantity. B) a higher price and quantity. C) a lower price and the same quantity. D) a higher price and the same quantity.
One of the most important determinants of accelerated economic growth is: a. relaxed property rights
b. an increase in population. c. a high level of savings. d. an increased rate of consumption.
In 1993 the negotiations over the North American Free Trade Agreement and the General Agreement on Tariffs and Trade were frequently characterized by comments such as, "Free trade with low-wage countries will cause the wages of U.S. workers to fall." Identify the errors in statements such as this