China Fixes Its Exchange Rate (Yuan Per Units of Foreign

question 77

Multiple Choice

China fixes its exchange rate (yuan per units of foreign currency) at a rate above its free-market equilibrium level,which means that China is keeping the external value of the yuan

• A)artificially high.
• B)at its free-market price.
• C)at the rate established by its trading partners.
• D)artificially low.
• E)in line with the world market for foreign currency.

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Definitions:

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