During the Chinese experience with pegging the yuan to the ...

[aabwk4]

During the Chinese experience with pegging the yuan to the dollar, the yuan was ________. As a result, there was a ________ of dollars on the market, and the Chinese government had to purchase dollars to maintain the peg.
 
  A) undervalued; shortage B) undervalued; surplus
  C) overvalued; shortage D) overvalued; surplus

Question 2

Use the graph above to answer the following question. What can we conclude about the attitude towards risk this individual is portraying given this utility function?
 
  What will be an ideal response?

[Tonyam972]

Answer to Question 1

B

Answer to Question 2

The marginal utility of income is constant for all income levels. This would imply that the person is risk neutral.

[aabwk4]

TYSM

[vickybb89]

Gracias!