Although the Pegged Exchange Rate Between the Yuan and the Dollar

question 203

Multiple Choice

Although the pegged exchange rate between the yuan and the dollar has undervalued the yuan,China has been reluctant to abandon the peg for fear that abandoning the peg would

• A)increase exports and increase the current account deficit.
• B)reduce capital inflows.
• C)reduce exports and reduce economic growth.
• D)increase Chinese holdings of dollars.

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Definitions:

Conscious Mind

The aspect of the mind that is aware of one's self, environment, and thoughts, accessible to introspection and reflection.

Situational Variables

External factors that can influence the outcome of experiments and the behavior of individuals in specific contexts.

Self-regulatory Systems

The mechanisms and processes by which individuals control and direct their thoughts, feelings, and actions in pursuit of their goals.