The 2005-2008 Chinese policy with respect to the Yuan has been to
a. allow its currency to float.
b. allow its currency to rise in value quickly.
c. allow its currency to rise in value slowly.
d. allow its currency to fall in value slowly.
e. allow its currency to fall in value quickly.
Commercial banks can increase the money supply by
a. accepting demand deposits
b. loaning out required reserves
c. loaning out excess reserves
d. selling bonds to the public
e. buying bonds from the Fed
According to the law of increasing opportunity cost,