Suppose the current exchange rate between the Chinese yuan and the United States dollar is 7 yuan per dollar. If the Fed sought to drive up the exchange rate to 8 yuan per dollar then it would
A) buy dollars.
B) sell dollars.
C) buy yuan.
D) sell dollars and buy yuan.
A
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Which of the following activities does NOT diversify risk?
A) investing in real estate in various states across the United States. B) writing earthquake insurance policies for the entire Western United States C) writing hurricane insurance policies only in Florida D) purchasing the stock of a variety of different companies
The growth of the labor force and the growth of labor productivity help determine the rate of GDP growth
a. True b. False Indicate whether the statement is true or false
A decrease in AS will trigger less inflation under which of the following conditions?
a. AD is relatively steep. b. AD is relatively flat. c. AS is relatively steep. d. AS is relatively flat.
In a market system, well-defined property rights are important because they:
A. encourage economic activity. B. limit destructive economic growth. C. create economic problems. D. reduce unnecessary investment.