When Walmart sells toys imported from China:
A) the U.S. consumers pay in dollars while the workers who produce the toys are paid in yuan.
B) the U.S. consumers pay in dollars and the workers who produce the toys are also paid in dollars.
C) the U.S. consumers pay in yuan while workers who produce the toys are paid in dollars.
D) the U.S. consumers pay in yuan and the workers who produce the toys are also paid in yuan.
Question 2
According to the interest-rate-based transmission mechanism for monetary policy, a decrease in the money supply will cause the
A) interest rate to fall, causing planned real investment spending to rise and leading to an increase in aggregate demand.
B) interest rate to fall, causing planned real investment spending to rise and leading to a decrease in aggregate demand.
C) interest rate to rise, causing planned real investment spending to fall and leading to a decrease in aggregate demand.
D) interest rate to rise, causing planned real investment spending to rise and leading to a decrease in aggregate demand.
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