In recent years, the United States has accused China of manipulating the yuan so as to gain an unfair competitive advantage in global trade.Thus, proposals have been made that the United States should offset China's currency manipulation by
A) selling yuan and buying dollars, thus depreciating the yuan against the dollar.
B) selling and buying dollars, thus appreciating the yuan against the dollar.
C) buying yuan and selling dollars, thus depreciating the yuan against the dollar.
D) buying yuan and selling dollars, thus appreciating the yuan against the dollar.

Question

Quizplus · Accepted Answer

The proposal to offset China's currency manipulation involves buying yuan and selling dollars, thus appreciating the yuan against the dollar. This would make Chinese goods more expensive for American consumers and make American goods relatively cheaper for Chinese consumers, reducing the trade imbalance between the two countries. Therefore, the best choice is D.

In Recent Years, the United States Has Accused China of Manipulating