When China devalues its currency
A) the dollars per Chinese yuan will increase
B) the drain of U.S. reserves on Chinese yuan will fall
C) U.S. exports to China will increase
D) the price of imported Chinese textiles in the U.S. will fall
E) Chinese imports will increase

Question

Quizplus · Accepted Answer

When China devalues its currency, it means that the yuan becomes cheaper relative to other currencies. This makes Chinese goods less expensive for foreign buyers, including those in the U.S., thus the price of imported Chinese textiles in the U.S. will fall.

When China Devalues Its Currency