In the graph below, the value of the dollar in terms of yuan is:
A. appreciating because the dollar buys more yuan.
B. appreciating because the dollar buys fewer yuan.
C. depreciating because the dollar buys more yuan.
D. depreciating because the dollar buys fewer yuan.
Answer: D
You might also like to view...
The opportunity cost of holding money
A) refers to the amount of paper currency held by the Fed. B) is measured by the alternative interest yield obtainable by holding some other asset. C) is based on the fiduciary monetary system. D) refers to the Fed's role as the lender of last resort.
Why is it likely that the United States has an absolute advantage in goods and yet it still ends up importing them from other countries?
What will be an ideal response?
If the political leaders of a country want to promote economic growth, which of the following policy alternatives would be most effective?
a. imposition of price controls on agricultural products in an effort to keep food cheap b. a public-sector investment program financed by highly progressive taxation c. low taxes, a monetary policy consistent with long-run price stability, and the abolition of price controls and trade restrictions d. expansionary monetary policy designed to keep interest rates low
Returns to scale refers to
A. what happens to output when all inputs are varied in some proportion. B. what happens to output when all inputs are held fixed. C. the law of diminishing returns. D. what happens to output when at least one input is fixed and one is varied.