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Question
Consider the market for Chinese currency (yuan). Suppose that the initial equilibrium exchange rate was $0.125 per one yuan. Then assume that American consumers like Chinese products more than before. If Chinas central bank wants to peg the exchange rate at its initial level ($0.125 per yuan), the central bank will have to
a. buy yuan and sell dollar.
b. sell yuan and buy dollar.
c. buy yuan and buy dollar.
d. sell yuan and sell dollar.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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