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alexdok [17]
3 years ago
15

If actions of the chinese government caused a shortage of domestic currency, then the exchange rate would be

Business
1 answer:
irinina [24]3 years ago
4 0

this will reduce the supply of china's domestic currency which would <u>contract the supply curve of the domestic currency (of china)</u> thus would <u>create demand</u> and thus <u>increasing the exchange rate in comparison to foreign currencies</u> thus leading to <u>appreciation of china's domestic currency in relation to foreign currencies.</u>

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