If China experienced capital flight, the supply of Chinese yuan in the market for foreign-currency exchange would shift
a. left, which would make the real exchange rate of the Chinese yuan appreciate.
b. left, which would make the real exchange rate of the Chinese yuan depreciate.
c. right, which would make the real exchange rate of the Chinese yuan appreciate.
d. right, which would make the real exchange rate of the Chinese yuan depreciate.
d
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When the Federal Reserve buys Treasury bonds, it is called
A) a swap. B) an open market operation. C) a bond roll-over. D) bonding.
The International Monetary System was established
A) by the United Nations. B) by the Bretton Woods Agreement. C) by the United States, in cooperation with Great Britain. D) during the Great Depression by the League of Nations.
Assuming consumption and leisure are both normal goods, hours worked will fall when the wage increases if
A. if the income and substitution effect move in the opposite direction (i.e., if they are of the opposite sign). B. the income effect dominates the substitution effect. C. if the income and substitution effect move in the same direction (i.e., if they are of the same sign). D. the wage increase is accompanied by an increase in prices. E. the substitution effect dominates the income effect.
Which of the following will not shift the aggregate demand curve to the right?
A. consumers becoming more optimistic about the future B. an increase in government spending C. business optimism increases D. consumers become pessimistic about the future