In Order to Level the Playing Field in Trade Between

question 324

Multiple Choice

In order to level the playing field in trade between the U.S. and China, U.S. policymakers have called upon China's government to allow the yuan to float freely, as other world currencies. Through government regulation, China maintains an undervalued currency, which results in

• A) more buying power for Chinese consumers who want to purchase U.S. goods and goods from other countries.
• B) maintaining robust Chinese exports and a favorable balance of trade for China.
• C) developing better relations with industrialized countries who want to increase the value of their exports.
• D) stability and strength of the Chinese yuan against the U.S. dollar and the euro.