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Recently, Americans Have Been Enjoying Many Products from China, as Evidenced

question 59

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Recently, Americans have been enjoying many products from China, as evidenced by China being the primary source of American imports. American exports to China have not grown as rapidly. If the U.S. dollar - Chinese yuan exchange rate was free to fluctuate, we would expect that the American dollar would ____ relative to the Chinese yuan. To maintain the target exchange rate, the Chinese have ____ dollars.


Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured annually.

Profits

The financial gains obtained when revenue from business activities exceeds expenses, costs, and taxes.

Expected Rate Of Return

The predicted amount of return a given investment is anticipated to earn over a specified period.

Total Investment

The aggregate amount of funds invested in an economy by businesses and individuals, including investments in capital assets and inventories.

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