On July 21st, 2005, the Chinese government changed the value of the yuan from 8.28 yuan per U.S. dollar to 8.11 yuan per U.S. dollar. One effect of this change should have been
A. an increase in the dollar price of Chinese goods.
B. market pressure to return the rate to 8.28 yuan per dollar.
C. an increase in the prices of American goods in the Chinese market.
D. a decline in the average price level in the United States
Answer: A
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A firm's average total cost is $80, its average variable cost is $75, and its output is 50 units. Its total fixed cost is
A) less than $100. B) between $100 and $200. C) between $200 and $300. D) more than $300.
Under perfect capital mobility, an increase in world interest rates will
a. increase income and reduce domestic interest rates. b. increase income. c. increase income and lead to a balance of payment deficit. d. increase income and lead to a balance of payment surplus.
Assume Bonnie has $64 to spend on hairbands and earrings. Her budget constraint is shown in the graph shown. Which of the following can be said about Bonnie's choices?
A. Bonnie can buy twice as many hairbands as earrings.
B. Earrings must cost $16 each.
C. Hairbands must cost $8 each.
D. All of these are true.
The demand curve for a factor is that part of the MRP where marginal product is
A. rising. B. falling. C. positive. D. negative.