If the dollar were to depreciate against major foreign currency, the dollar's depreciation should result in:
A. an increase in U.S. exports and an inward shift of the U.S. aggregate demand curve.
B. an increase in U.S. exports and an outward shift of the U.S. aggregate demand curve.
C. a decrease in U.S. exports and an inward shift of the U.S. aggregate demand curve.
D. a decrease in U.S. exports and an outward shift of the U.S. aggregate demand curve.
Answer: B
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How were countries whose industries competed with Chinese industry affected by a yuan that was pegged to the dollar?
A) Because the yuan was undervalued at the pegged exchange rate, the level of Chinese exports remained higher than they would have been if the exchange rate was allowed to float freely. B) Competitors feared that the declining value of the dollar would continue to make Chinese goods more expensive. C) Because the yuan was overvalued at the pegged exchange rate, competing firms from other countries feared that abandoning the peg would lead to an increase in Chinese exports. D) Because China's population is so large relative to other countries, the pegged exchange rate made the goods of foreign competing firms much less expensive than domestic Chinese goods.
An example of a randomized controlled experiment is when
A) households receive a tax rebate in one year but not the other. B) one U.S. state increases minimum wages and an adjacent state does not, and employment differences are observed. C) random variables are controlled for by holding constant other factors. D) some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared holding constant other factors.
If a monopolist is producing a level of output where MR exceeds MC, then it should
A. Lower its output. B. Increase its output. C. Raise its price. D. Shift its marginal cost curve upward.
A higher population growth rate can potentially lead to a higher rate of growth in per capita real Gross Domestic Product (GDP) if
A. it leads to an increase in the amount of dead capital. B. young workers replace older workers. C. there is a greater labor force participation rate. D. it leads to greater democracy in a nation.