Question
Suppose after some deliberation, the US government, under President Biden decides to unwind the Trump-era tariffs. Given the relatively high dependence on trade in China,
Suppose after some deliberation, the US government, under President Biden decides to unwind the Trump-era tariffs. Given the relatively high dependence on trade in China, in comparison with the US, what is the likely impact on the Chinese RMB? Explain carefully using a diagram of equilibrium foreign exchange. Explain the theory and intuition carefully
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
