During the Chinese Experience with Pegging the Yuan to the Dollar,the

question 104

Multiple Choice

During the Chinese experience with pegging the yuan to the dollar,the yuan was undervalued.As a result

• A)there was a surplus of yuan on the market that the Chinese government had to purchase to maintain the peg,depleting China's reserves of dollars.
• B)there was a surplus of dollars on the market that the Chinese government had to purchase to maintain the peg.
• C)the prices of Chinese exports were higher than they would have been without the peg.
• D)the equilibrium value of the yuan was below the pegged value of the yuan.