China began pegging its currency, the yuan, to the U.S. dollar in 1994. Because the yuan has been ________ at the pegged exchange rate, the Chinese government ________ its reserves of U.S. dollars as the government purchased more ________ to maintain the pegged exchange rate.
A) undervalued; increased; dollars
B) undervalued; decreased; yuan
C) overvalued; decreased; yuan
D) overvalued; increased; yuan
Ans: A) undervalued; increased; dollars
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The following data represent a personal income tax schedule. Answer the next question on the basis of this information.Taxable IncomeTotal Tax$15,000$1,50030,0003,50060,0009,000120,00025,000As income increases, the average tax rate
A. decreases. B. increases. C. remains constant. D. has no definite pattern.
What most accurately describes the trend in the Gross Domestic Product of the US between 1870 and 2007?
a. Real GDP increased by about two percent per year. b. Although nominal GDP increased significantly, real GDP went up only slightly because of inflation. c. Both nominal and real GDP have been flat because the periods of inflation were offset by the periods of deflation. d. The fluctuations in GDP have become greater over time, and were largest in the late 1900s.
The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the tax from workers and half the tax from firms. The mayor will be able to successfully divide the burden of the tax equally if the
a. demand for labor is more elastic than the supply of labor. b. supply of labor is more elastic than the demand for labor. c. demand for labor and supply of labor are equally elastic. d. It is not possible for the tax burden to fall equally on firms and workers.
When economists describe preferences, they often use the concept of
a. markets. b. income. c. utility. d. prices.