Under a managed float,
a. a central bank allows the forces of supply and demand to determine the exchange rate
b. a nation can have neither a trade deficit nor a trade surplus
c. a nation "pegs" its price level to a foreign currency
d. a nation "pegs" its price level at some fixed value
e. a central bank intervenes in the foreign exchange market to stabilize its exchange rate
E
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Everything else equal, if the dollar appreciates against the Chinese yuan:
A) China will stop trading with the U.S. B) China will export more to the U.S. and will import less from the U.S. C) the Chinese government will sell yuan in the foreign exchange market. D) China will import more from the U.S. and will export less to the U.S.
Explain how income and substitution effects alter the saving behavior of households
What will be an ideal response?
Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would
A) increase the measured labor force participation rate. B) increase the measured unemployment rate. C) decrease the number of persons in the working-age population. D) decrease the number of persons in the labor force.
Which of the following groups had the highest percentage unemployed in February 2015?
a. new entrants b. job leavers c. job losers: temporary d. job losers: nontemporary