Explain how an increase in the American demand for Chinese goods leads to a change in the Chinese yuan relative to the U.S. dollar
Americans who wish to buy more Chinese goods will need more Chinese yuan. This increase in demand for yuan increases the price of yuan (relative to the dollar) on the foreign exchange market. The yuan has, therefore, appreciated relative to the dollar, and the dollar has depreciated relative to the yuan. A yuan will buy more dollars than before, and a dollar will buy fewer yuan.
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Does a tax on buyers affect the demand curve?
A. Yes, it shifts down by the amount of the tax. B. Yes, it shifts to the left by the amount of the tax. C. Yes, it shifts up by the amount of the tax. D. No, there is change in the quantity demanded, but the demand curve does not move.
An example of asymmetric information is when a seller of a house knows more than the buyer about the house's condition
a. True b. False Indicate whether the statement is true or false
Productivity growth rates in the United States have remained fairly constant from 1948 to 2000.
Answer the following statement true (T) or false (F)
Adverse aggregate-supply shocks or stagflation would cause a:
A. Movement up along a stable Phillips Curve B. Movement down along a stable Phillips Curve C. Shift of the Phillips Curve to the left D. Shift of the Phillips Curve to the right