The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B.
A) income is more equally distributed than the income shown in
B) income is less equally distributed than the income shown in
C) the first quintile earns less income than the first quintile earned in
D) the fifth quintile earns more income than the fifth quintile earned in
Question 2
In the foreign exchange market, if the demand for dollars permanently decreases, the Fed can maintain the exchange rate at its old equilibrium level indefinitely by buying dollars.
Indicate whether the statement is true or false
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