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please provide detail on how to get to answer 46. Cheng said that China should shift part of its $US 1.4 trillion in foreign exchange
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46. "Cheng said that China should shift part of its $US 1.4 trillion in foreign exchange reserves out of U.S. dollars and into other, stronger currencies. But Gilmore replied that this would cause a run on the dollar and China will not drive a run on the dollar, not now and not ever." What is the reasoning behind the view that China will never drive a run on the dollar? a) China likes the U.S. and would never do anything to harm it b) there would be no run on the dollar here because other countries would be buying these dollars c) if the value of the dollar fell, China would suffer a huge loss in the value of its $US foreign exchange reserves d) if the value of the dollar fell, so would the value of the Chinese currency, making China's exports more expensiveStep by Step Solution
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