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Suppose that the Bank of China wishes to peg the rate of exchange of its currency, the yuan, in terms of the US dollar. In each of the following situations, should it add or subtract from its dollar foreign exchange reserves? Why?
a) US parents begin buying fewer Chinese made toys for their children.
b) US interest rates rise relative to interest rates in China, so Chinese residents seek to purchase additional US financial assets.
c) Chinese furniture manufacturers produce high quality early American furniture and successfully export large quantities
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
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Suppose that deterioration in the education level of the U.S. population reduces the marginal product of labor.
Efficiency and sustainability are management goals with respect to renewable resources. As Field explains, biological and economic considerations are typically blended in determining the efficient allocation of these resources.
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