Why Did the Chinese Central Bank Switch from Pegging the Value

question 228

Multiple Choice

Why did the Chinese central bank switch from pegging the value of the yuan to the US to a basket of currencies in 2005?

• A)US politicians had threatened to impose tariffs to offset advantage of an undervalued yuan.
• B)China's trade with the US fell dramatically in 2004.
• C)The value of the US fluctuated wildly in 2004.
• D)China's holdings of US treasury bonds.
• E)Chinese economic growth slowed to below 7%.

Understand the basic principles of classical conditioning and operant conditioning.

Identify examples of reinforcement, punishment, and their effects on behavior.

Distinguish between different types of reinforcements (positive, negative) and their applications.

Comprehend the concept of shaping through successive approximations.

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Definitions:

Break-even Quantity

The number of units that need to be sold for a business to cover its production costs, resulting in zero profit or loss.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent or salaries, remaining constant regardless of business activity.

Marginal Costs

The cost added by producing one additional unit of a product or service.

Net Present Value

A calculation used to assess the value of future cash flows in today's dollars, considering the time value of money.