Why has Chinese exchange rate policy been controversial?

What will be an ideal response?


By tying its currency to the U.S. dollar, it weakened along with the U.S. dollar, making its products cheaper. While policy has been modified a little, there are likely to be growing calls for a more significant appreciation of its currency.

Economics

You might also like to view...

The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 

A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A

Economics

Considering both product markets and resource markets, most economic decision makers participate in the economy as both buyers and sellers

a. True b. False

Economics

A shortcoming of national income accounting is that it ignores: a. the depreciation of manufactured capital

b. spending by poor households who are receiving government transfer payments. c. spending on intermediate goods. d. the depletion of natural resources. e. U.S. products that are sold overseas.

Economics

If a large number of individuals file unemployment claims while working in the underground economy: a. the unemployment rate overstates the level of unemployment

b. the unemployment rate understates the level of unemployment. c. the accuracy of the unemployment rate is not affected. d. discouraged worker statistics will underestimate the true state of frustration by job seekers.

Economics