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Question 4 6 pts Explain how the following events affect variables 1 through 3, other things unchanged. Event: The Fed purchases Chinese currency, yuan, using
Question 4 6 pts Explain how the following events affect variables 1 through 3, other things unchanged. Event: The Fed purchases Chinese currency, yuan, using USD (United States Dollar): Variable 1: Supply of yuan in the foreign exchange markets ____________________ (increase or decrease: briey explain). Variable 2: Value ofyuan in the foreign exchange markets _____________________ {appreciate or depreciate; briey explain}. Variable 3: Chinese goods exported to the U5. ___________________ {increase or decrease; briey explain}
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