Question

If the Chinese Yuan increases in exchange value compared to the European common currency, or euro, what is the likely outcome?

Answer 1

Answer:

The answer is C.

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Explanation:

Answer 2

Chinese importers will buy more European goods and services, and European importers will buy fewer Chinese goods and services.

Explanation:

When the value of a currency of a particular country(China)increases it means that the imports become cheaper as they have to pay less in terms of the other currency.

Like in the above question the value of Chinese currency yuan has increased in comparison to the European currency Euro.So the Chinese importers have to pay less for their imports from European countries .Therefore the imports become cheaper for china and expensive for the European importers.

so, the answer is Chinese importers will buy more European goods and services, and European importers will buy fewer Chinese goods and services.