The United States and China have been embroiled in a trade war since the year 2017. One of the reasons for the trade war has been the growing U.S. trade deficit, 2/3 of which is with China. The U.S. has accused China of unfair trade practices and currency manipulation, both of which ring true. The U.S. would like to reduce the trade deficit with China by increasing exports to China and reducing imports from China. In order to achieve this, what would the U.S. like to see happen with the international exchange rate of the U.S. dollar (as compared to the Chinese currency - the renminbi or yuan)?
This is not a writing assignment, this is a multiple-choice question
The United States and China have been embroiled in a trade war since the year 2017. One of the reasons for the trade war has been the growing U.S.
Group of answer choices
The
The U.S. dollar should become stronger and the Chinese currency (renminbi or yuan) should become weaker.
The U.S. dollar should weaken against the Chinese currency (renminbi or yuan).
The U.S. should ask other nations to purchase U.S. dollars and to sell their holdings of the Chinese currency (renminbi or yuan).
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