MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
8th Edition
ISBN: 9780134518312
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 34, Problem 2MCQ
To determine
To identify:
Whether china is a net borrower or lender and if it is a debtor or a creditor nation.
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Which best explains why U.S. businesses want the U.S. dollar to decrease in value against the Chinese renminbi?
They want to be able to buy more raw materials from China.
They want to sell more products to Chinese consumers.
They want to buy more goods from Chinese businesses for resale.
They want to be able to move their factories to China.
You have the following annual figures for the New Zealand economy.
Investment expenditure $42.5 billion Government savings -$1.7 billion
Many politicians and commentators would like to see continued increases in investment and current account surpluses rather than deficits. If these events are to occur, what else must be happening in the economy?
1. The Government must raise the retirement age.
2. Government spending must fall
3. National savings (private and government) must rise
4. New Zealand must restrict foreign ownership of land and other assets
From the FT in mid-June: “China has approved record amounts of investment to flow out of the country through an official scheme as authorities liberalise the local financial system against a backdrop of a rallying renminbi … The move to allow more capital to leave the country came as policymakers have increasingly voiced concerns over high asset prices, as well as a rally in the currency. Due to strict controls on its capital account, China’s vast household savings are primarily funnelled into domestic markets.
Chinese savers are relatively trapped in mainland China – why might this matter for local asset prices and why would the government care?
How would liberalizing Chinese cross-border capital outflows affect the renminbi (their currency)? Given its recent movements (over the last year plus), why might the government be interested in affecting the renminbi? Whom might subsequent moves benefit?
Chapter 34 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Foundations of Economics
Ch. 34 - Prob. 1SPPACh. 34 - Prob. 2SPPACh. 34 - Prob. 3SPPACh. 34 - Prob. 4SPPACh. 34 - Prob. 5SPPACh. 34 - Prob. 6SPPACh. 34 - Prob. 7SPPACh. 34 - Prob. 8SPPACh. 34 - Prob. 9SPPACh. 34 - Prob. 10SPPA
Ch. 34 - Prob. 1IAPACh. 34 - Prob. 2IAPACh. 34 - Prob. 3IAPACh. 34 - Prob. 4IAPACh. 34 - Prob. 5IAPACh. 34 - Prob. 6IAPACh. 34 - Prob. 7IAPACh. 34 - Prob. 8IAPACh. 34 - Prob. 1MCQCh. 34 - Prob. 2MCQCh. 34 - Prob. 3MCQCh. 34 - Prob. 4MCQCh. 34 - Prob. 5MCQCh. 34 - Prob. 6MCQCh. 34 - Prob. 7MCQCh. 34 - Prob. 8MCQ
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