A flexible exchange rate system crisis involves
A) a revaluation of the currency.
B) a rapid and uncontrolled depreciation of the currency.
C) a decrease in the dollar value of the country's international debt.
D) a sure political collapse of the ruling government.
Question 2
Which of the following is true according to the case study on U.S. / China trade presented in the chapter?
A) China has relative abundance in capital.
B) China has relative abundance in skilled labor.
C) The United States has relative scarcity in unskilled labor.
D) The United States has relative scarcity in capital.
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