The large trade deficit that the United States has with China persists in part because:
A. the U.S. economy has grown slowly in recent years.
B. China has fixed its exchange rate to a basket of currencies that includes the dollar, and
has not allowed the yuan to appreciate relative to the U.S. dollar.
C. China has experienced rapid economic growth over the past decade.
D. China has recently imposed or increased tariffs on most goods imported from the United
States.
B. China has fixed its exchange rate to a basket of currencies that includes the dollar, and
has not allowed the yuan to appreciate relative to the U.S. dollar.
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If we assume sticky prices in both foreign and domestic trading nations, the rate of pass-through from the nominal to the real exchange rate falls as:
a. the percentage of traded goods priced in foreign currencies rises. b. the percentage of traded goods priced in the domestic currency rises. c. the percentage change in the exchange rate exceeds the percentage increase in inflation. d. traders find new markets and are able to avoid nations with currency depreciations.
Deposits are examples of a bank's
A) liabilities. B) assets. C) net worth. D) balance sheet.