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The Chinese Government's Intervention in the Foreign Exchange Market by Buying

Question 3

Multiple Choice

The Chinese government's intervention in the foreign exchange market by buying U.S. dollars and selling yuan had the effect of


A) weakening the U.S dollar to increase the U.S.trade deficit with China.
B) strengthening the U.S dollar to increase the U.S.trade deficit with China.
C) strengthening the yuan to increase the U.S.trade deficit with China.
D) weakening the yuan to decrease the U.S.trade deficit with China.

Correct Answer:

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