During 2007, the United States and Japan announced possible limits on Chinese imports through higher tariff rates on Chinese products.To avoid these limits, China would have had to:
A)decrease the value of the yuan and increase its trade surplus.
B)decrease the value of the yuan and decrease its trade surplus.
C)increase the value of the yuan and increase its trade surplus.
D)increase the value of the yuan and decrease its trade surplus

Question

Quizplus · Accepted Answer

Increasing the value of the yuan would make Chinese goods more expensive, potentially reducing the trade surplus by decreasing exports and increasing imports, which could alleviate trade tensions.

During 2007, the United States and Japan Announced Possible Limits