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Why Would the Chinese Government Want the Yuan to Worth

Question 119

Multiple Choice

Why would the Chinese government want the yuan to worth less than its market determined value?


A) An undervalued currency gives Chinese exporters an advantage over foreign competitors.
B) An undervalued currency gives Chinese importers an advantage of domestic competitors.
C) An undervalued currency is less stable than any other pegged value.
D) If the value of the yuan were determined by market forces, Chinese consumers would suffer.
E) An undervalued currency reduces conflict with trading partners.

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