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China has a fixed exchange rate. Its currency is called the yuan. Say that income growth in China will be faster than that in other
China has a fixed exchange rate. Its currency is called the yuan. Say that income growth in China will be faster than that in other countries. In order to maintain a fixed exchange rate the Chinese government would need to: a. Sell foreign currency and buy Chinese yuan. b. None of the other answers is correct. c. Adopt contractionary fiscal policy. d. Adopt expansionary fiscal policy. e. Sell Chinese yuan and buy foreign currency
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