Question
a) Give one reason for China to decrease the value of Chinese Yuan to improve its current account balance (5 points). (b) Give one reason
a) Give one reason for China to decrease the value of Chinese Yuan to improve its current account balance (5 points). (b) Give one reason for China to decrease the value of Chinese Yuan to improve its financial account balance (5 points). (c) Give one reason for China to increase the value of Chinese Yuan to improve its financial account balance (5 points). 2. Without increasing interest rate, how can China defend the value of its currency? (5 points) 3. Explain (a) two advantages of Chinas tight monetary and fiscal policy (5 points) and (b) two disadvantages of Chinas tight monetary and fiscal policy (5 points
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