Question
In: Economics
A) by approximately how much was the yuan believed to be undervalued during the early 2000s?...
A) by approximately how much was the yuan believed to be undervalued during the early 2000s? Provide 2 pieces of evidence that could possibly suggest that the yuan was actually undervalued during the early 2000s. (Hint: think about China macroeconomic variables)
B) thew Peterson institute for international economies argues that as of Feb 2010 there was an "undervaluation of at least 25 percent of China's yuan and the currencies of several important economies surrounding it (Hong Kong, Malaysia, Singapore, Taiwan). Correction of all the Asian Undervaluation would cut the global U.S. deficit by about $100 billion ..." Briefly mention 2 major reasons why the U.S. experienced such a huge current account deficit (Hint: you may use equation to explain why imports have Benn more than exports)
C) Briefly explains 2 distinct policies that can be used to improve the U.S. current account deficit ?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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