Suppose the Chinese Yuan Increases in Its Value Relative to the U.S

question 30

Multiple Choice

Suppose the Chinese yuan increases in its value relative to the U.S. dollar. In the U.S. economy,

• A) the price level will increase and real GDP will fall if the increase in aggregate demand is less than the decrease in aggregate supply.
• B) the price level will increase and real GDP will fall if the decrease in aggregate demand is more than the increase in aggregate supply.
• C) the price level will fall and real GDP will increase if the increase in aggregate supply is greater than the decrease in aggregate demand.
• D) the price level will fall and real GDP will decrease if the decrease in aggregate demand is less than the increase in aggregate supply.

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Definitions:

Cultural Pluralism

A situation in which smaller groups within a larger society maintain their unique cultural identities, and their values and practices are accepted by the wider culture provided they are consistent with the laws and values of the wider society.

Jewish Faith

The religious beliefs and practices associated with Judaism, a monotheistic religion of the Jewish people based on the Torah.

Ethnic Enclave

Focused areas of homogeneous ethnic groups, usually coupled with some business and institutional activity.

Cultural Shock

The feeling of disorientation and discomfort that comes from encountering an unfamiliar culture or way of life.