One World View article, "The Risks of China's Foreign-Exchange Stockpile," states that
A. The reserves of foreign exchange in China can cause inflation in China.
B. China's reserves of currency can cause deflation in China.
C. The dollar is undervalued.
D. The trade imbalance is due to an overvalued yuan.
Answer: A
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Any action that gives rise to a supply of foreign currency is a
A) deficit item on the current account and a surplus item on the financial and capital accounts. B) surplus item on the current account and a deficit item on the financial and capital accounts. C) surplus item on the current, financial, or capital account. D) deficit item on the current, financial, or capital account.
Which of the following is a feature of models?
A) Models are the same as hypotheses. B) Models help making predictions for the future. C) Models are more complicated than real life phenomena. D) Models are as complex as the phenomenon being studied.
Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 36 and WR = 25 and the probability of drought is 0.75. Brandon's certainty equivalent is:
A. 45.75 units of water. B. 33.06 units of water. C. 30.5 units of water. D. 61 units of water.
The Fed can decrease the money supply by conducting open-market
a. sales or by raising the discount rate. b. sales or by lowering the discount rate. c. purchases or by raising the discount rate. d. purchases or by lowering the discount rate.