Most economists have argued that in the 2000s, the Chinese yuan was ________ relative to the United States (US)dollar, causing the Chinese central bank to ________ US dollars to maintain the peg.

Question

Quizplus · Accepted Answer

Most economists agree that the Chinese yuan was undervalued relative to the US dollar in the 2000s. To maintain this peg, the Chinese central bank had to buy US dollars, which increased the supply of yuan and kept its value lower relative to the dollar.

Most Economists Have Argued That in the 2000s, the Chinese