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ccording to a newspaper story
"China's critics contend that the yuan's exchange rate of slightly more than 8 yuan per dollar is far out of line with market forces and gives Chinese manufacturers a big advantage against foreign firms, adding to the enormous U S trade deficit and China's burgeoning trade surplus "
Paul Blustein, "U.S. Urges IMF Crackdown on Currency," Washington Post, September 24, 2005.
To say that the yuan's exchange rate was "far out of line with market forces" means that the yuan relative to the dollar, and thus Chinese manufacturers have a "big advantage against foreign firms" because
• Foreign goods are inexpensive in China
• Chinese goods are inexpensive overseas
A. It decreases Chinese imports to the U S and increases U.S. e Chinese goods are inexpensive overseas the China.
B. It decreases Chinese imports to the U S and increases U.S. e Chinese goods are inexpensive overseas the China.
C. It decreases Chinese imports to the U.S and increases U.S. exports to China, increasing the U S. trade surplus with China.
D. It increases Chinese imports to the U S and decreases U.S. exports to China, increasing the U S trade surplus with China.
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