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China Fixes Its Exchange Rate (Yuan Per Units of Foreign

Question 77

Multiple Choice

China fixes its exchange rate (yuan per units of foreign currency) at a rate above its free-market equilibrium level,which means that China is keeping the external value of the yuan


A) artificially high.
B) at its free-market price.
C) at the rate established by its trading partners.
D) artificially low.
E) in line with the world market for foreign currency.

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