5. How does China’s trade surplus with America put pressure on its currency (the Yuan or...

5. How does China’s trade surplus with America put pressure on its currency (the Yuan or RMB) to rise. How does its central bank prevent the Yuan (RMB) from appreciating? Describe the actions and illustrate on a graph. The y-axis should be labelled $ per Yuan. Assume the supply curve of Yuan is perfectly inelastic (vertical)

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Rahul Sunny answered 2 years ago

5. How does China’s trade surplus with America put pressure on its currency (the Yuan or...

5. How does China’s trade surplus with America put pressure on its currency (the Yuan or RMB) to rise. How does its central bank prevent the Yuan (RMB) from appreciating? Describe the actions and illustrate on a graph. The y-axis should be labelled $ per Yuan. Assume the supply curve of Yuan is perfectly inelastic (vertical)

According to some U.S. Treasury officials, China’s currency, yuan, is considered significantly undervalued. Assuming it is...

According to some U.S. Treasury officials, China’s currency, yuan, is considered significantly undervalued. Assuming it is true, explain what Chinese government needs to do in order to maintain their currently undervalued official exchange rate. Also, explain the effect of keeping yuan undervalued on the Chinese money supply and inflation.

Since joining the World Trade Organization (WTO) in 2001 China’s trade ties with Latin America have...

Since joining the World Trade Organization (WTO) in 2001 China’s trade ties with Latin America have expanded rapidly. However, China’s relationship with specific Latin American sub-regions varies greatly. Describe the nature of China’s ties with Latin America and analyze the differences, for example, between comparative advantage in China-South American ties and competitive disadvantage in China-North and Central American ties.

China has a trade surplus and the People’s Bank of China (PBC, China’s central bank) purchases...

China has a trade surplus and the People’s Bank of China (PBC, China’s central bank) purchases all the excess foreign currency earning of the country’s exporters. This policy is equivalent to bond purchases by the PBC through open market operations. What is the impact of the PBC’s policy of foreign currency purchase on the country's money supply? If all foreign conditions are exogenous and the aggregate real income, the price level, and the future conditions of the Chinese economy (including...

Does trade put downward pressure on U.S. wages? Provide evidence and an example to support your...

Does trade put downward pressure on U.S. wages? Provide evidence and an example to support your argument.

how does the exchange rate and trade deficit or surplus affect a countries economic well- being?...

how does the exchange rate and trade deficit or surplus affect a countries economic well- being? In what situations is the U.S. harmed/ benefited from the various positions of each ( high trade deficit with a weak U.S. dollar trade surplus with a strong U.S. dollar. etc.)

China has long pegged its currency (the Yuan) to the U.S. dollar. Assuming the free flow...

China has long pegged its currency (the Yuan) to the U.S. dollar. Assuming the free flow of capital across borders, explain why China cannot have an independent monetary policy reaction curve with a fixed currency.

When a country’s currency depreciates against the currencies of its major trade partners, its trade balance...

When a country’s currency depreciates against the currencies of its major trade partners, its trade balance often worsens in the short run before it starts to improve. This leads to a J curve in the trade balance. Illustrate the J curve graphically. Explain why the J curve happens

116. An increase in a country’s trade barriers will cause the _____ for its currency to...

116. An increase in a country’s trade barriers will cause the _____ for its currency to shift to the _____. a. demand, left b. demand, right c. supply, left d. supply, right e. supply and demand, left 119. The advantage of having a weak currency is it: a. stimulates the demand for exports. b. make imports more expensive. c. makes currency trading more profitable. d. All of the above. e. None of the above. 120. If the foreign interest rate...

how does immigration effect america

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5. How does China’s trade surplus with America put pressure on its currency (the Yuan or...

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5. How does China’s trade surplus with America put pressure on its currency (the Yuan or...

According to some U.S. Treasury officials, China’s currency, yuan, is considered significantly undervalued. Assuming it is...

Since joining the World Trade Organization (WTO) in 2001 China’s trade ties with Latin America have...

China has a trade surplus and the People’s Bank of China (PBC, China’s central bank) purchases...

Does trade put downward pressure on U.S. wages? Provide evidence and an example to support your...

how does the exchange rate and trade deficit or surplus affect a countries economic well- being?...

China has long pegged its currency (the Yuan) to the U.S. dollar. Assuming the free flow...

When a country’s currency depreciates against the currencies of its major trade partners, its trade balance...

116. An increase in a country’s trade barriers will cause the _____ for its currency to...

how does immigration effect america