By fixing its exchange rate, China is most likely
A) achieving a low inflation rate by anchoring to the U.S. inflation rate.
B) keeping its export prices low.
C) making it easier to compete in world markets.
D) Both B and C.
A
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The exchange rate that is established in the absence of foreign exchange market intervention by the government is known as a(n):
a. historical anachronism. b. fixed exchange rate. c. "dirty float" exchange rate. d. unmanaged exchange rate. e. free market equilibrium exchange rate.
A public good is a good or service for which consumption by one person makes consumption by others impossible.
Answer the following statement true (T) or false (F)
Which of the following statements is TRUE of static tax analysis?
A) A government receives lower tax revenues by raising the tax rate. B) A government receives higher tax revenues by raising the tax rate. C) A government cannot change it tax revenues by changing the tax rate. D) A change in the tax rate can raise or lower tax revenues, depending on other factors.
Samantha buys a bond in the amount of $1,000 with a promised interest rate of 18 percent. If the market interest rate decreases to 3 percent, Samantha can sell his bond for up to
A. $3,000. B. $2,000. C. $5,000. D. $6,000.