Why Is China's Currency Undervalued

question 21

Multiple Choice

Why is China's currency undervalued?

• A) The Asian miracle is over.
• B) They do not trade with the U.S.
• C) They do not allow their currency to appreciate despite large external surpluses.
• D) They are stockpiling international reserves to protect against the next East Asian crisis.
• E) They are not aware of the real value of their currency.

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