Refer to the Article Summary. All else equal, a depreciation of the Chinese yuan relative to a currency such as the U.S. dollar should ________ Chinese exports and ________ imports to China
A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease
D
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In a fixed exchange rate system
A) market forces and the country's stock of gold determine its exchange rate. B) a central bank affects the value of a currency by changing its foreign exchange reserves. C) market forces play a role in determining the fixed value of a currency. D) the International Monetary Fund determines exchange rates.
The person who assumes the risks and uncertainties of business is
a. a manager of the business b. an owner of the business c. an excellent example of human capital d. an entrepreneur e. key to production, but not a factor of production
Goods that are produced but not immediately sold
A. count in the GDP as private investment. B. do not count in the GDP. C. count in the GDP as a change in private inventories. D. count in the GDP as intermediate input.
Because people can enjoy the benefits of public goods whether they pay for them or not, they are usually unwilling to pay for them. This is known as the
A. nonexcludable problem. B. free-rider problem. C. drop-in-the-bucket problem. D. nonrival problem.