« previous next »

Author Question: China linked its exchange rate to the U.S. dollar which meant in the 2004-2007 period A) it ... (Read 48 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
China linked its exchange rate to the U.S. dollar which meant in the 2004-2007 period
 
  A) it appreciated against most other currencies, hurting its manufacturing competitiveness.
  B) it depreciated against most other currencies, making its products cheaper.
  C) it decreased the size of its merchandise trade surplus.
  D) it overvalued its currency, making it hard to attract foreign investment.

Question 2

Imagine that the economy is at a point that is above both AA and DD, where both the output and asset markets are out of equilibrium. Which first action is TRUE?
 
  A) The economy will stay at this level in the short run.
  B) The exchange rate will first drop to a point on the AA schedule.
  C) The exchange rate will first move to a point on the DD schedule.
  D) The AA-DD equilibrium will shift to the position of the economy.
  E) The exchange rate will first move left to a position on the AA schedule.
International Economics ¦ Gerber ¦ 6th Edition
Buy Test-Bank


dlook33

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

For linked genes, recombinant frequencies are less than 50 percent For linked genes, recombinant frequencies are less than 50 percent
Economic Differentiation in China Economic Differentiation in China
Fetal Period Fetal Period
Embryonic Period - 3rd week Embryonic Period - 3rd week
How to calculate invest at each rate How to calculate invest at each rate
Rate order question Rate order question
Video: Interview with Person who has Panic Attacks

For a complete list of videos, visit our video library