A decrease in Chinese demand for U.S. dollars over the past year has reduced the market equilibrium exchange rate of the dollar from 10 yuan per dollar to 6.5 yuan per dollar. Other things being equal, which of the following is a likely consequence of this kind of change in the exchange rate of the dollar? a. A higher price of exported U.S. products in Chinese for those paying in yuan, which leads to a deficit in the net export. b. A lower price for imported Chinese products in the U.S. for those paying in dollars, which leads to a surplus in the net export. c. A higher price for imported Chinese products in the U.S. for those paying in dollars, which leads to a deficit in the net export. d. Both (a) and (c)
A decrease in Chinese demand for U.S. dollars over the past year has reduced the
A higher
A lower price for imported Chinese products in the U.S. for those paying in dollars, which leads to a surplus in the net export.
A higher price for imported Chinese products in the U.S. for those paying in dollars, which leads to a deficit in the net export.
Both (a) and (c)
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