In order to maintain an undervalued yuan to encourage a trade ...

[meagbuch]

In order to maintain an undervalued yuan to encourage a trade surplus, the Chinese government must buy dollars and increase the supply of yuan.
 
  Indicate whether the statement is true or false

Question 2

Critically evaluate the following statement made in favor of the sub-prime loan bailout of mortgage companies who made high interest rate loans to marginal credit-worthy customers.
 
  The government should do everything within its powers to prop up ailing lenders and homeowners, just as they've done in the past with other troubled industries, from airlines to savings and loans

[cuttiesgirl16]

Answer to Question 1

TRUE

Answer to Question 2

Bailing out mortgage companies and banks that have engaged in risky behavior may encourage the same kind of behavior in the future.