Answer:
appreciates and buys more Chinese goods
Explanation:
Nominal exchange rate is the rate at which one unit of currency can be exchanged for another unit of currency.
If exchange rate is 1 dollar for 6 Chinese yuan , it means that 1 dollar would buy 6 Chinese yuan.
If exchange rate now becomes 1 dollar for 7 Chinese yuan , it means that 1 dollar would buy 7 Chinese yuan.
One dollar is now buying more Chinese yaun (7>6). It means that the dollar has appreciated and the Yaun has depreciated.
Currency appreciation is when the a currency increases in value.
As a result the dollar would buy more Chinese goods.
I hope my answer helps you
