Although the Pegged Exchange Rate Between the Yuan and the U.S.dollar

question 77

Multiple Choice

Although the pegged exchange rate between the yuan and the U.S.dollar has ________ the yuan, China has been reluctant to abandon the peg for fear that doing so would ________.

• A)undervalued; reduce exports
• B)undervalued; reduce imports
• C)overvalued; increase imports
• D)overvalued; reduce exports
• E)depreciated; reduce exports

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