Asked by
Sruthi Kamal
on Dec 19, 2024
Verified
The large trade deficit that the United States has with China persists in part because
A) the U.S. economy has grown slowly in recent years.
B) China has fixed its exchange rate to a basket of currencies that includes the dollar, and has not allowed the yuan to appreciate relative to the U.S. dollar.
C) China has experienced rapid economic growth over the past decade.
D) China has recently imposed or increased tariffs on most goods imported from the United States.
Trade Deficit
A situation where a country imports more goods and services than it exports.
Exchange Rate
The price of one currency in terms of another for conversion purposes.
Yuan
The official currency of the People's Republic of China.
- Assess the repercussions of trade surpluses and deficits on the economic stability of a country.
- Familiarize oneself with the motivations and ramifications of pronounced trade deficits, with a special emphasis on the US and its trading associates.
Verified Answer
JV
Learning Objectives
- Assess the repercussions of trade surpluses and deficits on the economic stability of a country.
- Familiarize oneself with the motivations and ramifications of pronounced trade deficits, with a special emphasis on the US and its trading associates.