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Suppose Market Forces Outside of the Control of the Chinese

Question 65

Multiple Choice

Suppose market forces outside of the control of the Chinese government are causing the price of Chinese yuan in terms of Japanese yen to rise.In order to maintain the current value of the yuan,the Chinese government must


A) file a pegging application with one of the three international currency-management agencies.
B) ban Chinese firms from hiring Japanese workers.
C) use tax incentives to encourage Chinese firms to hire more Japanese workers.
D) get official approval from the World Trade Organization.
E) buy yen with newly created yuan.

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