Why did the Chinese central bank switch from pegging the value of the yuan to the US to a basket of currencies in 2005?
A) US politicians had threatened to impose tariffs to offset advantage of an undervalued yuan.
B) China's trade with the US fell dramatically in 2004.
C) The value of the US fluctuated wildly in 2004.
D) China's holdings of US treasury bonds.
E) Chinese economic growth slowed to below 7%.
Correct Answer:
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