Some claim that China's trade surpluses are created by currency undervaluation. Is this true? Explain
What will be an ideal response?
Some observers argue that China gets trade surpluses by manipulating its currency and keeping it undervalued. More careful analysis can show that China's currency may have been undervalued against the dollar in the first part of the 2000s, but that has not been the case since 2006 or 2007. In other words, currency manipulation is not the source of its competitiveness.
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When playing a game in which players are in direct competition with one another, it is best to ________ a pure strategy because the strategy is ________
A) use; predictable B) use; unpredictable C) avoid; predictable D) avoid; unpredictable
Free riding is primarily a characteristic of pure private goods
Indicate whether the statement is true or false
The demand for money is
A. negatively related to nominal GDP and positively related to the level of interest rates available on other financial assets. B. positively related to nominal gross domestic product (GDP) and to the level of interest rates available on other financial assets. C. negatively related to nominal GDP and to the level of interest rates available on other financial assets. D. positively related to nominal GDP and negatively related to the level of interest rates available on other financial assets.
The tendency for increases in government purchases to cause reductions in private saving is known as the crowding-out effect.
a. true b. false