Rising income in China triggers an increase demand for U.S.imported goods by Chinese households.This causes ________ Chinese yuan and yuan should_________ against the dollar.

Question

Quizplus · Accepted Answer

When Chinese households demand more U.S. goods, they need more dollars, leading to an increase in the supply of yuan in the foreign exchange market, causing the yuan to depreciate against the dollar.

Rising Income in China Triggers an Increase Demand for U