Although the pegged exchange rate between the yuan and the U.S.dollar has ________ the yuan, China has been reluctant to abandon the peg for fear that doing so would ________.

Question

Quizplus · Accepted Answer

The pegged exchange rate has historically undervalued the yuan, making Chinese goods cheaper abroad and thus boosting exports. China fears that abandoning the peg would appreciate the yuan, making exports more expensive and potentially reducing them.

Although the Pegged Exchange Rate Between the Yuan and the U.S.dollar