A financial market panic that causes US depositors to withdraw their funds from Chinese banks, would cause a(n)________ in the demand of US dollars and a(n) _________in the supply of the Chinese Yuan
a. Increase; Increase
b. Increase; Decrease
c. Decrease; Increase
d. Decrease; Decrease
a
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In the economic way of thinking, government consists of many different people interacting on the basis of
A) fear. B) legal guarantees. C) prevailing property rights. D) public interests.
The purchase by a household in China of a CD produced in the United States is included in U.S
A) consumption expenditures. B) investment expenditures. C) net exports. D) government purchases.
Refer to Figure 9.7. After the policy was implemented, price became
A) $10. B) $30. C) $50. D) $70. E) between $50 and $70, but the price is uncertain because quantity can be any amount between 2000 and 4000.
If the real exchange rate between the U.S. and Argentina is 1, then
a. purchasing-power parity holds, and 1 U.S. dollar buys 1 Argentinean bolivar. b. purchasing-power parity holds, and the amount of dollars needed to buy goods in the U.S. is the same as the amount needed to buy enough Argentinean bolivars to buy the same goods in Argentina. c. purchasing-power parity does not hold, but 1 U.S. dollar buys 1 Argentinean bolivar. d. purchasing-power parity does not hold, but the amount of dollars needed to buy goods in the U.S. is the same as the amount needed to buy enough Argentinean bolivars to buy the same goods in Argentina.