The exchange-rate policy of a "crawling peg," adopted by the Chinese government in 2005, means that the government
A. allowed small and controlled changes in the exchange-rate value over time.
B. pegged the yuan to the U.S. dollar at the equilibrium exchange rate.
C. caved in to pressures from foreign governments.
D. slowly adjusted the currency composition of its official international reserve assets toward more U.S. dollar-denominated bonds.
Answer: A
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What is the essential characteristic of money?
A) It must be backed by some other tradable commodity. B) It must be backed by gold or silver. C) It must be accepted and used by people as a general medium of exchange. D) It must be declared by government authority.
If an increase in the price of good X causes the demand for good Y to decrease, this indicates that
a. X and Y are complements. b. X and Y are substitutes. c. X and Y are unrelated. d. the demand for X is elastic, but the demand for Y is inelastic.
In general terms, which of the following statements regarding changes in income inequality in the United States is correct?
A. Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.8 in 1970 to just over 0.25 in 2010. B. Inequality has increased slightly over the last 40 years as witnessed by the Gini coefficient increasing from below 0.4 in 1970 to over 0.45 in 2010. C. Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.5 in 1970 to almost 0.05 in 2010. D. Inequality has increased substantially over the last 40 years as witnessed by the Gini coefficient increasing from about 0.1 in 1970 to over 0.7 in 2010. E. Inequality has stayed about the same over the last 40 years as witnessed by a Gini coefficient that has hovered around 0.6.
Does aid work? How strong is the evidence?
What will be an ideal response?