The People's Bank of China Announced That It Was Lowering

question 102

Multiple Choice

The People's Bank of China announced that it was lowering by 1.08 percentage points the one-year lending rate in response to the slowdown in the Chinese economy. This rate is the Chinese equivalent of the federal funds rate in the United States.
Www) nytimes.com, 11/26/2008
Other things remaining the same, there will be ________ in the exchange rate, ________ in imports and ________ in exports.

• A) a decrease; a decrease; an increase
• B) a decrease; an increase; a decrease
• C) an increase; a decrease; an increase
• D) an increase; an increase; a decrease

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Definitions:

Table Salt

A white crystalline substance that gives seawater its characteristic taste and is used for seasoning or preserving food, chemically known as sodium chloride (NaCl).

Water

A clear, flavorless, scentless, and almost colorless substance that is the primary component of the Earth's hydrosphere and the liquids found in every recognized living organism.

Hydrogen Bond

A delicate association between two molecules facilitated by the electrostatic attraction between a proton present in one and an electronegative atom in the other.

Ionic Bond

A chemical bond formed between two ions with opposite charges through the transfer of electrons.