If China Were to Adopt a Floating Exchange-Rate Regime, It

question 80

Multiple Choice

If China were to adopt a floating exchange-rate regime, it would:

• A) cause the Chinese trade balance to fall.
• B) cause the U.S. trade balance with China to fall.
• C) force the U.S. to adopt a fixed exchange rate to maintain the balance of trade.
• D) de-stabilize the entire world economy.

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