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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
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