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Suppose that the Chinese central bank has been intervening in the foreign exchange market, buying U.S. dollars in an effort to keep its own currency,

Suppose that the Chinese central bank has been intervening in the foreign exchange market, buying U.S. dollars in an effort to keep its own currency, the yuan, weak. If China decided to allow the yuan to float freely, what would you expect to happen to each of the following? a. U.S. exports to China would (?) (not change), (decrease), (increase). b. U.S. imports from China would (?) (not change), (decrease), (increase). c. The U.S. trade deficit with China would (?) (narrow), (widen), (not change).

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