In Recent Years, the United States Has Accused China of Manipulating

question 98

Multiple Choice

In recent years, the United States has accused China of manipulating the yuan so as to gain an unfair competitive advantage in global trade.The United States has argued that China has

• A) maintained an overvalued yuan that makes U.S. exports to China more expensive.
• B) maintained an undervalued yuan that makes U.S. exports to China more expensive.
• C) helped the yuan's exchange value to appreciate, thus making U.S. exports to China more expensive.
• D) revalued the yuan by adjusting its part value upward, thus making U.S. exports to China more expensive.

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Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a variable input, holding all other inputs constant.

Production Possibilities

A curve that represents the maximum combination of goods or services that can be produced in a given period with available resources.

Marginal Product

The extra output generated from increasing a particular input by one unit, while all other inputs remain unchanged.

Customers Served

The number of consumers who purchase or are provided with a product or service by a business within a specific period.