China's recent policy of currency management has _____ U.S. import prices and _____ U.S. manufacturing employment.
A) decreased; decreased
B) decreased; increased
C) increased; decreased
D) increased; increased

Question

Quizplus · Accepted Answer

China's policy of keeping its currency undervalued has made Chinese goods cheaper in the U.S., decreasing U.S. import prices. However, this also makes U.S. goods more expensive in China and reduces the competitiveness of U.S. manufacturing, leading to decreased U.S. manufacturing employment.

China's Recent Policy of Currency Management Has _____ U