China Has Fixed the Exchange Rate Between the Yuan and the U.S

question 387

Multiple Choice

China has fixed the exchange rate between the yuan and the U.S. dollar. Therefore, a recession in China _____ U.S. _____ to China more than if the exchange rate floated.

• A) raises; exports
• B) reduces; imports
• C) raises; imports
• D) reduces; exports

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Definitions:

Variation

The differences or deviations among individuals or items within a population, causing diversity in characteristics or outcomes.

Explanatory Variables

Independent variables in a model that are presumed to affect or determine a dependent variable.

MSR/MSE

Mean Square Residual/Mean Square Error, a measure used in statistics to estimate the variance of error or residual components.

T-Test Statistic

A statistic derived from sample data to determine if there is a significant difference between the means of two groups under study.