Which of the following exchange rate policies was undertaken by the Chinese government in 1994?
A. A free-floating exchange rate regime was adopted.
B. The Chinese yuan was revalued against the U.S. dollar.
C. The Chinese yuan was revalued against the euro.
D. The Chinese yuan was pegged to the U.S. dollar.
Answer: D
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If the federal government were to run a budget deficit, this would:
a. increase the size of the national debt. b. reduce the size of the national debt. c. leave the size of the national debt unchanged. d. increase the national debt only if the government also expands the supply of money.
The short run sequence of events following an unanticipated shift to restrictive monetary policy would be higher interest rates followed by dollar
a. depreciation, higher exports, and lower imports. b. depreciation, lower exports, and higher imports. c. appreciation, lower exports, and higher imports. d. appreciation, higher exports, and lower imports.
If your firm is producing a good at a level where marginal revenue equals marginal cost, and price is greater than average total cost, your firm:
A. should shut down and suffer a loss equal to your fixed costs. B. is earning an economic profit greater than zero. C. should decrease output. D. should increase output.
________: level of output at which average total costs equal average revenue or market price
Fill in the blank(s) with correct word